Cromwell European REIT (Cromwell EREIT) has successfully completed the acquisition of 11 new assets located in Czech Republic and Slovakia for a total cost of 110.8 million euros ($177.64 million).
The acquisition was partly funded in cash and partly funded by a share of the proceeds of the private placement of 232.56 million new units in Cromwell EREIT that raised gross proceeds of approximately 100 million euros.
Following the acquisition, Cromwell EREIT’s portfolio totals 107 properties in Denmark, Finland, France, Germany, Italy, the Netherlands, Poland, the Czech Republic and Slovakia.
SEE:Cromwell REIT's 1Q earnings up on higher logistics rents; undecided on DPU cuts
In a filing to SGX dated March 12, the company disclosed that 63.9 million euros from the gross proceeds of the placement were used for the acquisition, while 34.1 million euros were utilised to partially replenish working capital in relation to the recently completed acquisition of an intermodal freehold logistics park located in Italy.
A remaining 2 million euros were used to pay for expenses incurred from the private placement.
Simon Garing, CEO of the manager of Cromwell EREIT, says, "We are pleased to be able to complete the acquisition of the portfolio, despite the pandemic. Our current focus is on increasing Cromwell EREIT’s weighting towards the logistics and light industrial sector, and this acquisition takes us to 38%, much closer to our long-term goal of 50%. Importantly, Cromwell EREIT now also has a presence in two new attractive high-growth markets."
Shares in Cromwell EREIT closed flat at 44 euro cents on March 11.
