[SINGAPORE] IReit Global has secured two new leases in Spain last month, totalling around 5,200 square metres (sq m).
The manager of the Europe-focused real estate investment trust (Reit) said on Tuesday (Jul 8) that these tenancies will raise its overall occupancy rate from about 77 per cent to 83 per cent, after letting.
The first lease is for a total lettable area of approximately 1,622 sq m, by an existing tenant at Sant Cugat Green, an office building in Barcelona.
The tenant, a leading data-centre operator, had occupied the underground space for data-centre operations since 2022. It proceeded to establish its corporate offices in 2023, and will expand further to develop client workspaces and technical rooms with the latest lease agreement.
The new pact will bring the company’s total footprint at Sant Cugat Green to exceed 7,500 sq m, making it the largest tenant in the building as well as in IReit’s Spanish portfolio.
IReit’s manager said the second tenancy involves a prominent and rapidly growing Spanish company which signed a seven-year lease for around 3,550 sq m in Parc Cugat Green, an office building located within a business park in Barcelona.
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This agreement brings the building to full occupancy for the first time since it was acquired in late 2021.
IReit’s manager said this shows the “general stabilisation and recovery of the European office market”.
In Spain, particularly Madrid and Barcelona, office demand remains robust, with companies from the technology, consulting and education sectors driving activity, said IReit’s manager, citing a report by Cushman & Wakefield.
The manager added that it is in talks with a few other potential tenants for spaces in the other properties within its Spanish portfolio.
IReit units ended unchanged at S$0.28 on Tuesday, before the announcement.
