Cromwell European REIT is divesting three light industrial and logistics assets for a total consideration of EUR22.01 million.
Two of the assets are located in Germany while the remaining property is in France.
The assets formed part of the REIT’s initial public offering (IPO) portfolio five years ago.
The blended divestment consideration represents a premium of about 28% over the assets’ June 2022 valuations.
Additionally, this consideration is about 162% above the aggregate IPO purchase price of EUR 8.4 million in 2017.
“This is testament to the local teams’ ability to identify and manage value add opportunities, realising strong gains for investors”, said Simon Garing, CEO of the REIT’s manager, in reference to the premiums achieved.
“We expect to complete the divestment process in 4Q 2022, subject to fulfilment of certain customary conditions in Germany and France and recycle the capital into other opportunities”, he added.
Cromwell European REIT was last done on the Singapore Exchange at EUR1.97, which presently implies a distribution yield of about 8.83% according to data on the Singapore REITs table,