IREIT Global (SGX:UD1U)’s recent announcement of a key tenant vacating does not come as a surprise – this risk was well highlighted earlier. The exit timing does coincide with a challenging macro and funding environment, which has resulted in share price pressure.
- Read this at SGinvestors.io -
Redevelopment of the Berlin Campus
Berlin Campus to be repositioned as mixed-use urban precinct post exit of the property’ main tenant – Deutsche Rentenversicherung Bund (DRV) – upon its lease expiry at end Dec 2024.
- Read this at SGinvestors.io -
DRV will also pay a lump-sum of EUR15.5m in dilapidation costs, equivalent to 16 months of current rent, part of which IREIT Global plans to use for income top-up.
Considering the asset’s prime location, the current plan is to convert it into a mixed-use facility comprising office (~65-70% of the total or ~50,000sq m), two hotels (~25% of the total), and retail spaces.
IREIT Global is in active talks with leading hotel and long-stay hospitality operators to potentially master lease this space and de-risk income volatility.
Sponsor/co-investor partnership funding likely.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
