Cromwell European REIT (CEREIT) has acquired a light industrial property in Brøndby, Copenhagen, Denmark for DKK117.4 million (EUR15.8 million).
The property, Sognevej 25, is a five-building asset that sits on a 41,649-square metre site with a total lettable area of 22,224 square metres.
Three larger buildings on the site are predominantly for warehouse use while the two medium-sized buildings are suited for use as clinics, workshops, and administrative purposes, said the REIT.
The property is situated in Priorparken within the capital region of Denmark, in the populated parts of the Brøndby region of Copenhagen.
“Strategically, this new asset is located adjacent to CEREIT’s existing assets in Priorparken and will add value and scale to CEREIT’s portfolio of Danish assets”, said Simon Garing, CEO of the REIT’s manager.
“Notably, this off-market transaction was completed within days of the divestment of two much older, non-core assets in Germany at above valuation, validating the capabilities of our experienced on-the- ground asset management teams in Europe”, he added.
The occupancy at Sognevej 25 stood at 29% at the time of acquisition.
“Cromwell’s experienced on-the-ground asset management team is stepping up leasing efforts and expects the asset’s occupancy levels to reach 80% in the next 12 to 18 months”, said the REIT in its 18 October statement.
The REIT cited recent leasing successes at CEREIT’s adjacent Priorparken 700 and 800 warehouses, as the basis for this optimism.
With the completion of the Sognevej 25 acquisition and the German divestments, CEREIT’s portfolio weighting to the light industrial and logistics sector is now 46%.
CEREIT was last done on the Singapore Exchange at EUR1.59, which presently implies a distribution yield of 10.94% according to data on the Singapore REITs table.