A property at Stanislava Maliny being acquired by Cromwell European REIT. (Photo: Google Maps)

Cromwell European REIT is acquiring six assets in Czech Republic and five properties in Slovakia for EUR113.2 million (USD137 million).

The light industrial and logistics assets are being acquired on a net operating income yield of 6.7%, and at 2.1% below the independent valuation of EUR115.6 million.

The properties collectively feature 125,435 square metres of gross lettable area.

The assets are all freehold properties, almost 100% occupied by 17 tenants, and feature weighted average lease expiry (WALE) of 6.2 years.

Cromwell European REIT intends to fund the acquisitions through internal resources, existing debt facilities, or a combination of both.

Further details of the acquisition can be found here.

As first reported by REITsWeek in November 2020, the REIT has articulated an intention to pivot away from office properties in favour of light industrial, logistics, and data centre assets.

Related: Cromwell European REIT provides updates on data centre ambitions

Cromwell European REIT was last done on the SGX at SGD0.465, which implies a distribution yield of about 7.5% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

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