IREIT Global’s manager announced on May 17 that it had secured a lease extension of six years with GMG Generalmietgesellschaft mbH (GMG), a subsidiary from Deutsche Telekom and the sole tenant at Bonn Campus, for 100% of the property starting from May 2023. Further to the automatic 12-month extension of the lease with GMG at Bonn Campus in April 2022, the manager has continued to engage GMG and explore options to further extend the lease. The lease with GMG at Bonn Campus will now expire in April 2029.
Louis d’Estienne d’Orves, Chief Executive Officer of the manager, said, “We are very pleased to keep GMG in our building, a key tenant for us. This is a great outcome. The six-lease lease extension clearly demonstrates the long-term attractiveness of Bonn Campus. Our strong focus on active asset management has also paid off, as the lease extension will significantly improve IREIT’s lease expiry profile.” With the lease extension, Bonn Campus will remain 100% occupied until April 2029. On a pro forma basis, the weighted average lease expiry of Bonn Campus would improve from 1.0 years to 7.1 years as at March 31, 2022, while that of IREIT’s portfolio would improve from 3.7 years to 4.6 years.”
IREIT’s manager is now focused on lease renewals at its Darmstadt Campus where its lease is due to expire in November 2022. Active marketing of the spaces at Darmstadt Campus is ongoing. “The outbreak of the war between Ukraine and Russia and rising interest and inflation rates have led to significant economic and geopolitical uncertainty, which may slow down letting activity in Europe. As such, we will continue to assess the situation closely and maintain our vigilance, while remaining steadfast in executing our strategy to provide our unitholders with sustainable returns,” d’Estienne d’Orves added.