IREIT Global has acquired a freehold Grade A office building in Barcelona, Spain for EUR27.2 million (USD32 million).

The asset, Parc Cugat, has a gross lettable area of approximately 15,510 square metres and it is located within a business park in Sant Cugat del Vallès.

It is currently leased to five large blue-chip companies with a committed occupancy rate of 64.0% (76.5% for office spaces) and a weighted average lease expiry (WALE) of 6.8 years by gross rental income (GRI).

It generates an annual GRI of approximately EUR1.5 million as at 23 September 2021.

The seller will provide IREIT rental guarantee for the vacant space on the ground floor for a period of approximately 15 months.

The acquisition consideration represents a discount of approximately 4.5% to the independent valuation of the property with rental guarantee.

IREIT Global was last done on the SGX at SGD0.635, which currently implies a distribution yield of 7.24% according to data on the Singapore REITs table.