Cromwell European REIT (CEREIT) has acquired a light industrial and logistics asset in Italy for EUR19.6 million ($30.6 million).
The asset is CEREIT’s third logistics asset in Italy.
According to CEREIT’s manager, the acquisition price represents a net operating income (NOI) yield of 6.5% and is at 6.7% below the asset’s independent valuation of EUR21 million.
See: BlackRock emerges as substantial shareholder of Cromwell European REIT
CEO of the manager Simon Garing says the yield-accretive transaction is a valuable off-market opportunity for CEREIT to acquire a fully-leased freehold logistics asset in the strategic Greater Venice market in Northern Italy.
“The attractiveness of the acquisition is further underpinned by a long lease to Reckitt Benckiser Group, a leading multinational FMCG company, with an equity market capitalisation of GBP39 billion (S$72.2 billion) and a S&P3 credit rating of ‘A-’,” he adds.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
The asset occupies a site of 47,787 sq m and consists of a warehouse and small office component spanning 27,938 sq m in gross floor area. Located in Mira, about an hour’s drive away from Venice, The asset was developed in 1998 as a build-to-suit warehouse for Reckitt Benckiser in Italy, adjacent to its manufacturing plant and research and development centre.
The acquisition will be funded from available cash reserves.
The acquisition is not expected to have any material effect on CEREIT’s net tangible assets.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Units in CEREIT closed at EUR2.65 or $4.15 on Oct 29.
Photo: CEREIT
