IREIT divests office asset in Barcelona for $35.5m

The sale price was 6.1% above the property’s latest valuation. 

IREIT Global completed the divestment of Il∙lumina, a freehold office building in Barcelona, Spain, for $35.5m (€24.5m).

The sales consideration was 6.1% above the property’s latest valuation of $33.5m (€23.1m).

“The sales consideration also represents an attractive exit net property income yield of 5.9%,” said the REIT.

IREIT intends to use the net proceeds from the divestments to finance higher-yielding assets and refurbishment of existing assets.

Following the divestment of the Barcelona asset, IREIT expects its portfolio occupancy to increase from 90.4% as at 30 September 2023 to 91.5% on a pro forma basis.

The REIT also expects its weighted average lease (WALE) to increase from 4.9 years to 5.0 years.

Meanwhile, the REIT also shared that it inked a 10-year lease for two floors at  Münster Campus, replacing existing tenant Deutsche Telekom, which is leaving in the first quarter of 2024.

Its leases at all B&M properties in France were also extended by 3.8 years on average, adding over $31.9m (€22m) of stable cash flows to the REIT’s portfolio.

$1 = €0.69