IREIT Global could divest a partial stake in the project to reduce funding requirements and unlock value.
Redevelopment of the Berlin campus
- Read this at SGinvestors.io -
The office space is receiving good leasing enquiries with interest from two large prospective tenants that could result in full committed occupancy. This is on the back of continued flight-to-quality and its strategic location in Central Berlin (500m from main railway station and 20-minute drive to airport).
Total projected capex is EUR165-180m, including the earlier announced EUR82m capex for two hospitality leases. Capex will be funded in stages with a corresponding increase in asset value expected, thereby reducing gearing pressure. IREIT Global will also explore monetisation of a partial stake post securing leases, which could reduce funding needs and unlock value.
The proposed redevelopment is subject to unitholders’ approvals at its EGM on 24 Apr. We recommend that unitholders vote in favour of the transaction.
Leasing interest slowly picking up
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/.
