IREIT’s wholly-owned subsidiaries holding its Berlin Campus has been served with a payment order by Deutsche Rentenversicherung Bund (DRV), in the local court. DRV was the former main tenant of Berlin Campus.
The order, which was served on Sept 10, comes after DRV had agreed to pay IREIT a lump sum of EUR15.5 million ($23.3 million) to the REIT for the dilapidation costs to reinstate Berlin Campus back to its original state in July 2023.
On June 12, the REIT’s German subsidiaries received a legal letter from DRV claiming EUR8.4 million for partial repayment of the dilapidation cost.
“DRV alleges that the dilapidation cost agreed upon in the lease extension with DRV is ‘unjustified’ as the provision in the lease agreement that establishes the obligation to carry out any renovation works (to reinstate Berlin Campus to its original state) are invalid,” said the REIT in its July 28 filing.
The claim represents about 1.6% of the REIT’s net asset value (NAV) and 11.1% of its gross revenue for the FY2024 ended Dec 31, 2024.
At the time, IREIT said its legal counsel’s view is that its subsidiaries have a “high chance of successfully defending against the claim”.
“The manager is of the view that currently, no provision for the claim is required in IREIT’s financial results as at 30 June 2025,” it added.
In its Sept 11 filing, IREIT says the court has not examined the merits of DRV’s claim and that its subsidiaries have one month from the service of the payment order to file an objection. The deadline is Oct 10.
“The manager maintains its view that the Claim is unlikely to succeed legally, and that the [subsidiaries] have a high chance of successfully defending against the asserted claim,” says IREIT in its latest filing.
Units in IREIT closed at 18.4 Euro cents or 29 cents on Sept 11.
