IREIT Global has secured a major 5 year lease for approximately 3,450 square metre of office space with ÁREAS, S.A.U. (“AREAS”) at the Il-Luminia property located in Barcelona, Spain. Il-Luminia will be home to the new headquarters for the tenant, ÁREAS, S.A.U. in Barcelona.
If you are not familiar with AREAS, the company is one of the global leaders in food and beverage services. Founded in 1968, AREAS offers a wide range of services designed for national and international travelers through 91 airports, 84 railway stations and 227 motorway service plazas.
AREAS serves around 340 million customers each year through its 2,100 restaurants and stores across 12 countries in Europe and United States. The company is the market leader in Spain and France and is the third largest provider of travel food and retail services worldwide.
As of 31st March 2020, IREIT Global’s overall portfolio occupancy stood at 94.7%. This was because the overall occupancy was bogged down by its Spanish portfolio.
With the addition of AREAS, the occupancy rate for IL-Luminia will improve from 69.2% to 86.4% on a pro forma basis.
|DELTA NOVA IV||DELTA NOVA VI||IL-LUMINA||SANT CUGAT GREEN|
The 5 year lease with AREAS is definitely something positive for investors of IREIT Global. The new lease with AREAS represents one of the largest known rental transactions in Barcelona, Spain year-to-date.
The risk of investing into IREIT Global will be the weak EUR/SGD exchange rates which impacts the Distribution Per Unit in SGD.