IREIT Global to lose top tenant at Berlin Campus

DRV contributed about 20% of IREIT Global's gross rental income in Q1 2024.

IREIT Global will lose its top tenant at the Berlin Campus, as Deutsche Rentenversicherung Bund (DRV) will not renew its lease ending on 31 December 2024.

In a bourse filing, the REIT said DRV informed them on 21 June that it will not extend its lease at the Berlin Campus.

DRV’s lease at the Berlin Campus contributed about 20% of IREIT Global's total gross rental income in Q1 2024, making it the top tenant by rental income.

 The REIT's manager plans to continue with the proposed repositioning of the property, known as "Project RE:O” after DRV’s departure.

The manager plans to convert the Berlin Campus into a flexible mixed-use urban precinct to meet diverse tenant requirements. Potential uses for the new space include office areas, hospitality venues, retail stores, conference facilities, and health/wellness centres.

The REIT is already discussing “with a leading hotel brand and long-stay hospitality operators to lease the hospitality space.”
 
Meanwhile, the manager plans to explore various options to counter the anticipated distributions per unit reduction while the property repositioning is underway.

Potential measures include providing top-up distributions to unitholders funded by proceeds from the sale of Il∙lumina or the dilapidation costs payable by DRV.