IREIT Global (SGX:UD1U
) announced that Allianz, its fourth-largest tenant by revenue, is terminating its lease in advance. According to the manager, Allianz’s existing lease was supposed to run till May 31, 2029, but now is being terminated by Dec 31, 2027.
As such, the REIT has entered into an early termination agreement with Allianz in respect of the lease at Concor Park. Under the agreement, Allianz will continue to pay rent and service charges until Dec 31, 2027. Apart from that, Allianz will be making a termination payment of approximately €2.87 million.
The €2.87 million lump-sum compensation comprises the remaining contractual rent and service charges for the period from Jan 1, 2028 to May 31, 2029. IREIT Global expects the above termination payment to be received no later by the end of December.
“The termination payment is payable in full and is not subject to refund if the premises are re-let after Dec 31, 2027. However, if a replacement tenant is identified prior to Dec 31, 2027, the parties may discuss the termination of the ongoing lease to Dec 31, 2027, and whether any pro rata adjustment to the termination payment is appropriate. Any such adjustment would be subject to mutual agreement,” the manager states.
For the financial year ended Dec 31, 2025 (FY2025), Allianz’s lease at Concor Park contributed approximately 3.9% of the REIT’s total gross revenue and is the fourth largest tenant by revenue.
The termination payment of €2.87 million amounts to approximately 5.7% of the REIT’s annual gross revenue for FY2025.
The manager is currently working on securing new leases and they believe this will “enhance leasing flexibility” and “creates the potential to secure replacement tenants ahead of the original lease expiry date”.
The manager does not expect any material adverse financial impact on its distribution per unit for FY2026 arising from the early termination of the lease.
Units of IREIT Global closed flat at 21 cents on June 25.
