REITspots: IREIT Global's Properties

IREIT Global owns 2 properties, namely Saint Cugat Green (€44.6 mil valuation) and Parc Cugat (€27.0 mil valuation). This visit was done on a Monday afternoon, therefore there'll be a good indication of occupancy and 'liveliness' of the area. The properties are about 1.5 hours from the Barcelona Airport and about a 30 min drive from the city centre.

Cugat Green (left) and Parc Cugat (right)

Taking public transportation, Parc Cugat is a mere 5 mins' walk from St Joan Station, which is also a 30 min train ride from the city centre. For Sant Cugat Green, it is a 5 mins' bus ride (or a 30 mins' walk) from St Joan Station.

 St Joan Station. The Parc Cugat business park is visible from the station.

"Sant Cugat Green is a modern office building in Barcelona with a 5,256 sqm data centre space and a restaurant for internal use by its tenants. The property comprises three basement levels, a ground floor and four upper floors, and 580 parking spaces (of which 30 are for motorbikes). The property has floor plates with more than 3,000 sqm situated around a central atrium and enjoys good natural light throughout the building. Sant Cugat Green is LEED Gold certified." - IREIT Global's website.

Facade of Sant Cugat Green

List of tenants

The Lobby

Entrance to the building. Note the LEED Gold certification

3 of 4 floors of the basement carpark are mostly occupied, suggesting good occupancies

At first glance, this property looks very modern both from the outside and inside. I was only allowed to access the lobby area inside the gated area, as this is a main data centre-focused building. Data centres are stricter in general due to confidentiality. You may ask, doesn't IREIT Global specialise in Office properties?
 
Q: You have acquired Sant Cugat Green not too long ago. Are you looking to diversify and move towards Data Centres?

Charles: Not really. It is only because Sant Cugat Green was formerly a Data Centre operated by Deutsche Bank. After they moved out, we bought the property and have leased it to various companies such as HP. As the building was built back in 1993, we have renovated the building in 2022 and now it is currently tenanted to Oxigent Technologies. Their lease is due to end in 2034.

Parc Cugat is a modern office building situated within a business park in the office market of Sant Cugat del Vallès (Barcelona), which offers various services such as restaurants and hotels, as well as an efficient transport connection to the city of Barcelona. The property is located just 3km from Sant Cugat Green. The building consists of 12,000 sqm of office space, an auditorium with capacity for 200 people and more than 400 parking spaces for cars and motorcycles. With a modern façade and a versatile space distribution, the property comprises four basement levels, a ground floor and four upper floors with more than 2,000 sqm. Parc Cugat is LEED Silver certified." - IREIT Global's website.

For Parc Cugat, I was able to gain access and tour the property in depth. This was a very insightful visit of one of IREIT Global's properties. Enjoy the slideshow.

Parc Cugat is located within a Business Park, Sant Cugat del Vallès

This property is still undergoing minor works, such as the ongoing enhancement of the common terraces. For example, new automatic water pipes are being installed, and flowers and trees have also been ordered.

Parc Cugat is located within a Business Park, Sant Cugat del Vallès

Terraces for tenants

Terraces for tenants

200 seater Auditorium

Restaurant for internal use

Untenanted office space

Tenant advertisement

Occupancy of Parc Cugat is reported to be only 61.1%. Judging by the untenanted office spaces, it is easy to see why. However, one of these office spaces has already a Letter of Intent to be let, although it is still not confirmed.

Rooftop solar panel for green energy

View from the rooftop

Occupancy of Parc Cugat is reported to be only 61.1%. Judging by the untenanted office spaces, it is easy to see why. However, one of these office spaces has already a Letter of Intent to be let, although it is still not confirmed. 

IREIT Global's leasing strategy

Charles: Most of IREIT's tenants (and in Europe) have a mandatory minimum leasing period (i.e. tenants must pay a penalty is they leave early). For example, in Germany, it may be 10 years, while in Spain it can be 4-5 years.  

Conclusions

This site visit to IREIT Global's properties has been eye-opening. I got to see first-hand the ongoing Asset Enhancement Initiatives (AEIs) of office buildings as well as the initiatives that REITs are taking as part of their ESG Commitment. Lastly, I would like to thank Charles de Molliens, Vice President of Real Estate Private Equity at Tikehau Capital for his time.