The manager of Cromwell European REIT has divested three assets in Europe for a total price of €22.0 million ($30.6 million).
On Sept 9, the REIT manager announced that it had entered into separate sale and purchase agreements (SPAs) to divest two light industrial/logistics assets in Germany and one light industrial/logistics asset in France.
The German assets, which were divested to United Germany 2022 Propco S.à.r.l., are located at An der Steinlach 8-10, 65474 Bischofsheim (Bischofsheim II) and Kinzigheimer Weg 114, 63450 Hanau (Hanau). Bischofsheim II is a 50-year-old commercial and logistics park with 7,158 sqm of net lettable area (NLA). It also comes with 25 loading docks and service facilities.
Hanau is a 51-year-old business park that was more recently extended in 1996. It comprises a three-storey office block and a single storey warehouse with attached set of small office suites.
The REIT’s French asset, located Parc du Bois du Tambour, Route de Nancy, Gondreville (Bois du Tambour), was divested to a French investor. Bois du Tambour was constructed between 1980 and 1982 and consists of five main separate structures housing a mix of light industrial / warehouse space and associated offices, 10 km from the centre of Nancy city centre.
According to Simon Garing, CEO of the manager, the consideration represents a blended €4.85 million – or 28% – premium to the assets’ valuations of €17.15 million as at end-June.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
The three assets were part of the REIT’s portfolio at its initial public offering (IPO) five years ago.
“Cromwell’s local teams recently fulfilled the asset management plans and associated leasing programs for the three older style warehouses,” says Garing.
“Aided by the strength in the European logistics market, the teams’ executed the sales €13.6 million (162%) above the aggregate IPO purchase price of €8.4 million in 2017,” he adds. “This is testament to the local teams’ ability to identify and manage value add opportunities, realising strong gains for investors.”
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
The divestment is expected to be completed by the 4QFY2022, subject to the fulfilment of “certain customary conditions” in Germany and France. The capital gained will be recycled into other opportunities, says Garing.
As at 3.53pm, units in Cromwell European REIT are trading at 2 Euro cents lower or 1% down at €1.98.
