Cromwell European REIT (CREIT) has acquired light industrial / logistics properties in Italy and Germany for EUR68.3 million.
The Italian assets are in Vittuone, Milan and Coccaglio, Brescia respectively while the German property is located in Löbstedter.
All assets are 100% occupied, and the aggregate purchase price is 12.7% below independent valuations.
The assets feature a blended 6.8% net operating income yield with blended WALE of 5.4 years to a mix of high-quality and reputable tenant-customers, said the REIT.
The total gross lettable area is 126,752 square metres, with a stable of global tenants including ABB, Bialetti and Abbott Diagnostics.
The acquisitions are funded through a combination of CEREIT’s existing cash balances and drawing down on a revolving credit facility.
“The acquisitions are part of the EUR100 million advanced pipeline that we announced with CEREIT’s FY 2021 results, and further build CEREIT’s light industrial / logistics scale in core Western European countries”, said Simon Garing, CEO of CEREIT.
“The addition of these properties brings CEREIT’s portfolio to a 43% light industrial / logistics weighting, in line with the manager’s stated strategy to pivot towards a majority weighting in this sector”, it added.
CEREIT was last done on the SGX at EUR2.30, which presently implies a distribution yield of 7.37% according to data on the Singapore REITs table.