IREIT Global property in Barcelona, Il∙luminia. (Photo: Il∙luminia)

Singapore-listed IREIT Global has secured a 5-year lease for approximately 3,450 square metres of office space with ÁREAS.

The lease was secured at the REIT's Il∙luminia property located in Barcelona, against the backdrop of a COVID-19 pandemic.

The new lease with ÁREAS, a global food company, represents one of the largest known rental transactions in Barcelona in the year-to-date, said the REIT.

ÁREAS is expected to establish its new headquarters at the property.

The lease will increase the overall occupancy rate of Il∙lumina from 69.2% as at 31 March 2020 to 86.4% on a pro forma basis.

Since acquiring a 40% stake in the portfolio of four Spanish properties in Madrid and Barcelona, IREIT has been actively seeking tenants to bring up the occupancy levels of these assets.

“The new letting at Il∙lumina is a major milestone to our investment thesis since we acquired the Spanish portfolio in December 2019”, said Louis d’Estienne d’Orves, Chief Executive Officer of the Manager.

IREIT was last done on the Singapore Exchange at SGD0.71, with a distribution yield of about 8% according to data compiled at the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.