Cromwell European REIT (CEREIT) has acquired three light industrial and logistics properties in the UK and the Netherlands for EUR57.8 million (SGD88.4 million).

The properties collectively feature 65,360 square metres in total floor area and are fully let on long-term single leases with blended WALE at about 8 years.

The UK asset is fully tenanted by Thorn Lighting Limited while the Netherlands properties are leased out to B.V. and Agile B.V. respectively.

“Our experienced, on-the-ground team sourced and secured all assets at a favourable blended 5.6% [net operating income]yield and 3.9% below independent valuations on average”, said Simon Garing, CEO of Cromwell European REIT.

The acquisitions bring CEREIT’s portfolio to 41% in the light industrial/logistics weighting, with the remaining in the office sector.

CEREIT has indicated a target to expand the weighting of the industrial/logistics sector to 50%.

The acquisitions have been funded from part of the proceeds of CEREIT’s recent SGD100 million inaugural perpetual securities issue.

CEREIT was last done on the SGX at EUR2.53, which presently implies a distribution yield of 5.07% according to data on the Singapore REITs table.

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.