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This will be a very quick update on IREIT Global.
When I blogged about IREIT Global in February, I said I wasn't doing a Chicken Little because the vacant asset in Darmstadt would be progressively filled.
I also said that rental escalation was likely to continue as inflation remained elevated in Europe which would lead to higher asking rents as rents were linked to CPI.
The latest news from the management of IREIT Global is that 25% of Darmstadt Campus has been leased to a German federal government body.
The lease has rent secured at the prevailing market rate and it starts on the 1st of June and will last for 15 years.
Yes, 15 years.
This development is encouraging.
I believe that IREIT Global's management is competent and that the REIT owns quality assets which are very desirable.
Regular long time readers might remember that I also like the fact that IREIT Global's sponsors own approximately 50% of the REIT's units which means they have plenty of skin in the game.
Although this latest development is very good news, 75% of the asset in Darmstadt still needs to be filled.
So, I remind myself there is no hurry to increase my investment in the REIT as we are not out of the woods yet.
I will wait and see while my war chest continues to be refilled by incoming dividends.
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