An artist's impression of a Stratus data centre. (Stratus)

Cromwell European REIT’s (CEREIT’s) ambition to eventually derive about 10% of its annual net property income (NPI) from data centres is now on hold.

In response to questions from REITsWeek, CEREIT confirmed that the plan has been suspended indefinitely given the lack of suitable acquisition opportunities in the market.

An industry source familiar with the matter has also confirmed with this publication that a co-investment agreement that CEREIT entered into with its sponsor, Cromwell Property Group, and Stratus Data Centres has collapsed.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.