- Lendlease Global Commercial REIT announced that it has restructured the lease for Sky Complex, which comprises Buildings 1, 2 and 3 and originally ran until May 2032 with an option to pre-terminate the lease in 2026.
Buildings 1 & 2 leases re-leased on similar terms; till Jan 2033
- - Read this at SGinvestors.io -
- The new lease is also subject to annual indexation based on the increase in the ISTAT CPI. There is no pre-termination clause in the new lease.
- The starting annual rent for Buildings 1 and 2 will be approximately 1.5% higher than the existing in-place rent based on the original lease. This increase is in addition to the recent positive 5.9% rental increase in May 2023.
- - Read this at SGinvestors.io -
Two years “pre-termination fee” for return of Building 3 in 1QCY24
- Tenant Sky Italia will return Building 3 to Lendlease REIT in 1QCY24, upon the completion of reinstatement works, and will pay Lendlease REIT a “pre-termination” consideration equivalent to 2 years of existing annual rent of Building 3, which will help to mitigate vacancy risk as Lendlease REIT attempts to lease up the building as a multi-tenanted building.
- Market rents are €300-350 per sq m p.a., ~60-86% above the previous rent paid by Sky Italia, providing rental upside for Lendlease REIT, in our view.
First step towards deleveraging & restoring inorganic growth story
- Read more at SGinvestors.io.
