[SINGAPORE] Stoneweg European Reit (Sert) has renewed two major leases across two office assets involving tenants Motorola Solutions and Coolblue BV, the Reit’s manager announced on Thursday (Apr 24). The leases span about 27,000 square meters (sq m) in the Netherlands and Poland.
The global public safety and enterprise security firm Motorola Solutions extended its lease at the Green Office in Krakow, Poland, by another five years from August 2027, said the Reit’s manager. Covering 17,761 sq m of space, the site houses Motorola’s research and development for artificial intelligence and telecommunications facility, as well as its data centre facility.
The Green Office in Krakow, which has housed Motorola since 2011, was acquired by Sert in July 2019.
The manager said that the Dutch e-commerce firm Coolblue signed a new 5.5-year lease beginning July 2025 for its headquarters at Central Plaza in Rotterdam, the Netherlands. Coolblue has occupied the site since 2012, which also houses tenants such as KPMG and Holland Casino.
Sert’s manager noted that office rental prices in Rotterdam, where Central Plaza is located, are significantly cheaper than in Amsterdam, making the location attractive to both startups and larger multinationals. However, it noted that rental costs have grown since 2022 by 34 per cent.
Meanwhile, office rentals in Krakow, where the Green Office is situated, fall far below that of Poland’s capital Warsaw and some cities in Western Europe, the manager said. The city is known for attracting multinational corporations in the information technology and business services sector.
Sert’s manager said that the renewals will extend the weighted average lease expiry of the Reit’s office portfolio by almost six months, reaching 5.3 years. The manager also said that the Reit’s office portfolio occupancy rates have steadied at around 90 per cent in the last two years, with an 85 per cent retention rate achieved in 2024.
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The two lease renewals are valued at about 5.5 million euros (S$8.2 million) in combined annual rent, in line with their previous passing rental levels. Sert said the leases were secured at market rates.
Even so, the Reit manager said that independent assessments have estimated that the office portfolio is still around 9 per cent under-rented, suggesting further rental uplift potential for the portfolio.
“Tenant-customers continue to be selective in their office space demand, prioritising quality and good locations as working arrangements post-pandemic firm up,” the manager said.
“Sert will continue to invest in targeted asset enhancement initiatives to further future-proof the office portfolio, while partnering with our tenant-customers to help them achieve their sustainability and employee engagement goals.”
