Cromwell European REIT has entered into purchase and lease agreements to acquire three light industrial and logistics assets across Germany for EUR38 million.

The properties are being acquired from subsidiaries of Felss Group GmbH at approximately 4% below independently appraised values on a willing buyer, willing seller basis.

The assets are located in the cities of Pforzheim, Bretten and Königsbach-Stein, within Germany’s third-largest state, Baden-Württemberg, and near the state’s capital, Stuttgart.

They feature gross lettable area of 29,734 square metres on sites totalling 48,131 square metres.

The assets were constructed between 1973 and 2017, and refurbished between 2015 and 2017.

Once inducted into Cromwell European REIT’s portfolio, the properties will be fully leased to subsidiaries of Felss Group GmbH, a manufacturer of machine tools and components, for a term of 15 years under lease agreements on a triple-net basis with no break clauses.

The tenant-customer will also provide a 12-month rental security to Cromwell European REIT.

The acquisition will be funded by debt, and is expected to complete in February 2020.

Cromwell European REIT was last done on the Singapore Exchange at EUR0.52.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.