Cromwell European REIT property in Sangerhausen, Germany. (Photo: Cromwell European REIT)Cromwell European REIT property in Sangerhausen, Germany. (Photo: Cromwell European REIT)

Cromwell European REIT is acquiring a light industrial and logistics asset in Sangerhausen, Germany.

The property is freehold, with 30,557 square metres of net lettable area, and features a yield of 6.3%.

It is Cromwell European REIT’s second property in the light industrial and logistics space within a span of three months.

It was constructed in 2017 and can be repositioned for a multi-tenanted strategy, if required.

The purchase consideration for the property is EUR16.6 million (SGD25.0 million).

This approximately 0.5% below its independent valuation.

The property is fully leased to Euro Pool System International GmbH.

And the lease is up to May 2024 on a double-net basis.

The total cost of the acquisition is estimated to be approximately EUR18.2 million.

And it will be funded from a combination of cash reserves or available undrawn debt facilities.

The acquisition is not expected to have any material effect on the REIT’s net tangible assets.

Cromwell European REIT was last done on the Singapore Exchange at EUR0.53.

By Shariffa Al-Habshee

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