IREIT Global has secured two new leases in France and Germany.

The manager of the Europe-focused real estate investment trust (Reit) said in a Wednesday (Jan 31) bourse filing that the first is a lease extension for its 17 retail properties in France under the discount retailer B&M.

The properties’ sole tenant has agreed to extend its leases by 3.8 years on average, bringing the weighted average lease expiry (WALE) of the 17 properties to 7.7 years.

This will add over 22 million euros (S$32 million) of cash flow to IReit’s portfolio, said the manager. IReit completed its acquisition of the B&M properties in September 2023 and engaged the tenant in discussions.

The second lease is a 10-year agreement with a tenant for two office floors at the Munster North building in Germany. The new tenant – a major provider of mobile roof antennas in Germany – replaces existing occupant Deutsche Telekom when it leaves in the first quarter of 2024.

The rents are maintained at similar rates as the passing rents for Deutsche Telekom’s lease.

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“Notably, there are limited costs incurred by IReit and no rent-free period in respect of the new lease at Munster North building,” the Reit’s manager said.

Separately, IReit has completed its divestment of Il·lumina, an office building in Barcelona, Spain, at the previously announced price tag of 24.5 million euros. This represents a 6.1 per cent premium against the property’s latest valuation as at Dec 31, 2023.

With the divestment, IReit’s portfolio occupancy is estimated to increase from 90.4 per cent – as at Sep 30, 2023 – to 91.5 per cent on a pro forma basis. Its WALE will increase from 4.9 to five years.

IReit will use the net proceeds for financing higher yielding assets and to refurbish existing assets, its manager said.

The Reit ended Wednesday at S$0.40, down S$0.005 or 1.2 per cent.