IREIT Global, a Europe-focused real estate investment trust, has successfully issued its inaugural S$85m green notes, due 2028, under its $1b Multicurrency Debt Issuance Programme. The issuance, which carries a 6.00% interest rate, was met with robust investor demand, reflecting strong confidence in IREIT’s strategic direction and its transformative project at Berlin Campus, known as Project RE:O.
Project RE:O aims to reposition Berlin Campus from a single-let office building into a vibrant, sustainable, and multi-functional destination. The net proceeds from the green notes will fund the initial phase of this transformation, focusing on establishing a premier hospitality hub. This includes converting a significant portion of the campus to accommodate two major international operators: Premier Inn, the UK’s largest hotel chain, will manage a 270-room hotel, and Stayery will feature 255 guest rooms, both under 20-year leases.
The transformation is set to diversify IREIT’s tenant base and income streams, enhancing the resilience and long-term appeal of its portfolio. Construction is expected to begin in the second quarter of 2025, with completion anticipated in early 2027. The project is committed to sustainability, targeting a minimum Leadership in Energy Environmental Design (LEED) Gold certification.
Peter Viens, CEO of the Manager, stated, “This successful and well-supported debut green bond issuance is a powerful endorsement of our strategy. The proceeds will kickstart the exciting first phase for Berlin Campus, creating a dynamic hospitality core.”
The issuance, managed by DBS Bank Ltd. and CIMB Bank Berhad, marks a strategic move towards greater collaboration with Singapore financial institutions, aligning with IREIT’s broader financial strategy to reduce asset encumbrance and diversify funding sources.
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