Cromwell European REIT property in Amsterdam, De Ruijterkade 5 (Photo: Google Maps)

Cromwell European REIT has divested 12 properties across Denmark, France and the Netherlands for EUR65.7 million.

The collective disposal consideration represents a 15.2% premium to the original purchase price, and a 4.1% premium to the latest independent valuations on the properties.

The properties are being sold to entities of funds advised by affiliates of the Blackstone Group.

CEO of Cromwell European REIT’s manager, Simon Garing, described the divestment as consistent with its strategy to recycle capital from asset sales.

The estimated capital gains to be derived from the sale should be in excess of EUR5 million, and this will increase Cromwell European REIT’s net asset value, its manager noted.

“We will continue to use our extensive local knowledge and experience in the European office and light industrial / logistics real estate markets and research-backed investment process to redeploy capital into more ‘on theme’ and accretive opportunities”, Garing added.

The total cost of the disposal is estimated to be approximately EUR0.7 million, comprising the disposal fee payable to the REIT’s manager, and other expenses.

The divestment is expected to be completed in the second half of February 2020.

Once completed, Cromwell European REIT’s portfolio occupancy rate will improve by 0.7%.

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.