IREIT Wins 12-year Major New Lease At Sant Cugat Green
June 22, 2022 – IREIT Global announced that the Manager has successfully secured a new lease for approximately 5,300 sqm of vacant data centre space at Sant Cugat Green, representing around 20.4% of total lettable area at the property.
The tenant of the new lease is a joint venture between two Spanish companies with long operating history in the information technology and power electronics markets.
Under the new lease agreement, the total lease duration is 12 years, including a two-year renovation phase (rent-free period) starting from 20 June 2022 and a break option at the end of the eighth year on 19 June 2030.
The initial annual rent is approximately €0.7 million and comes with an annual rent indexation based on a 3% margin above the consumer price index in Spain.
Mr Louis d’Estienne d’Orves, Chief Executive Officer of the Manager, said, “This is a milestone lease at Sant Cugat Green. Since 2016, the data centre space has not been leased out and is considered as structurally vacant. However, we have managed to fill up the entire space in approximately two years after we first acquired a stake in the property towards the end of December 2019 – a great achievement considering the challenging operating environment caused by the COVID-19 pandemic, rising inflation, and geopolitical tension in Europe.”
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