According to the REIT, this marks the second major lease contract secured at the property within a month. The first lease, which was secured with United Kingdom’s Premier Inn, was obtained at the end of November.
Stayery comprises a modern serviced apartment concept, which has had a growing presence in Germany, adds IREIT.
The lease agreement includes a long lease duration of 20 years with no break option, step- up rents in the first three years, and annual CPI indexation commencing from the fourth year.
According to the agreement, the tenant is expected to start operating by the first half of 2027 and is set to pay an initial annual rent of approximately EUR2.7 million ($3.8 million). The rent will subsequently grow to approximately EUR3.0 million at the end of the three-year step-up period.
With the addition of the lease agreement, the REIT adds that commitment for a total GFA of 20,948 sqm has since been garnered at Berlin Campus, which “places IREIT well on track on its execution plans to reposition Berlin Campus into a multi-let and mixed-use asset with office, retail and hotel components”.
Peter Viens, CEO of the manager, says, “Our success in securing these new hospitality leases ahead of Berlin Campus’ repositioning underscores the market appeal of the repositioned property and reflects IREIT’s proactive approach towards asset management. These leases will not only provide a perfect complementary fit, diversify our tenant mix but also create a compelling unique selling point for other prospective tenants, thereby reinforcing the value proposition of our repositioning efforts.”
The hospitality lease with Stayery comes on the back of a “strong” leasing momentum within IREIT’s portfolio. Within the REIT’s German portfolio, a 12-year lease was signed with an independent provider of consulting services and software solutions for approximately 2,230 sqm at Darmstadt Campus.
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Viens adds: “We are heartened to see our ongoing asset management initiatives have come to fruition, supported by a general recovery in the letting market in European real estate. As the engine for rental income, we will continue to focus on our leasing efforts to improve the overall occupancy rate of IREIT’s portfolio and drive sustainable returns for our unitholders.”
Units in IREIT Global closed 0.5 cents lower, or down 1.75%, at 28 cents on Dec 19.
