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Cromwell European REIT buys three logistics assets in UK and Netherlands for EUR57.8 mil

Atiqah Mokhtar
Atiqah Mokhtar • 2 min read
Cromwell European REIT buys three logistics assets in UK and Netherlands for EUR57.8 mil
The assets have a blended NOI yield of 5.9%.
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The manager of Cromwell European REIT (CEREIT) has announced on Jan 5 that it has entered into sale and purchase agreements to acquire three logistics in the UK and the Netherlands for EUR57.8 million ($88.4 million).

“Our experienced, on-the-ground team sourced and secured all assets at a favourable blended 5.6% net operating income (NOI) yield and 3.9% below independent valuations on average,” says Simon Garing, CEO of the manager.

Post-acquisition, CEREIT’s light industrial and logistics portfolio weighting grows to 41%, in line with the manager’s stated strategy to pivot to a 50% weighing of this sector.

The acquisitions have been funded from part of the proceeds of CEREIT’s $100 million inaugural perpetual securities issue in November.

The three properties - one in the UK and two in the Netherlands - span a total of 65,360 sq m total floor area and are fully let on long-term single leases. The assets have a blended weighted average lease expiry of nearly 8 years to tenant-customers comprising global lighting solution supplier Thorn Lighting, e-retailer Kleertjes.com, and fashion company Agile.

The UK asset, Thorn, is a freehold property located in Durham, North England. Built in 2008, the property sits on a 135,820 sq m site and consists of two buildings with a total lettable area of 41,611 sq m.

See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM

The two assets in the Netherlands are located in ‘s-Heerenberg and Tilburg respectively. The ‘s-Heerenberg property has a total floor area of 15,111 sqm and a site area of 21,913 sqm, while the Tilburg property has total floor area of 8,638 sqm and a site area of 14,139 sqm. Both assets are freehold properties.

The two Dutch acquisitions are CEREIT’s first in this market post-IPO, expanding its logistics portfolio in the Netherlands.

According to the manager, the acquisitions are 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

As at 9.06am, units in CEREIT are up 3 cents or 0.77% higher at $3.91.

Photo of Tilburg logistics asset: Cromwell European REIT

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