Cromwell European REIT's first acquisition in the UK. (Cromwell European REIT)

Cromwell European REIT (CEREIT) has acquired a freehold logistics asset in the UK for GBP10 million.

The asset, which is fully occupied by a third-party logistics provider on a 10-year lease, is the REIT’s first acquisition in the UK.

The new asset is Kingsland Grange - a single-story logistics building with 9,764 square metres of net lettable area and spanning a site area of 20,438 square metres at Kingsland 21, Warrington.

The asset was originally constructed in 1980, and it was recently refurbished in 2021 ahead of the new lease.

It is 100% occupied by Panther Warehousing Ltd, a B2C logistics service provider, on a lease that lasts till May 2031.

“We’ve been studying the UK market for some time and actively looking for accretive opportunities for CEREIT to make our entry, so I am pleased that we, as the manager of CEREIT, are able to deliver on our stated strategy in 2021”, said Simon Garing, CEO of the REIT’s manager.

“The acquisition further increases CEREIT’s exposure to light industrial / logistics property to 39%, accelerating CEREIT’s pivot towards logistics”, Garing added.

The asset purchase will be fully funded by cash.

CEREIT was last done on the Singapore Exchange at EUR2.53, which currently implies a distribution yield of 6.89% according to data compiled on the Singapore REITs table.

Related: Cromwell European REIT discloses long-term target mix for portfolio

By Shariffa Al-Habshee

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