Cromwell European REIT has declared its intention to divest its Bari Europa asset, which is presently being used as a training facility for Italy’s tax authorities.

The divestment has been widely expected, as the REIT continues to pivot into more strategic assets, including light industrial and logistics properties.

Related: Cromwell European REIT to embark on divestment spree for growth

The divestment of Bari Europa is subject to several conditions, such as approvals from the Italian government.

As these approvals have yet to be secured, there is no certainty or assurance that any transaction will materialise, said the REIT.

The sale of Bari Europa is consistent with the manager’s previously stated strategy to divest non-core and non-strategic assets within CEREIT’s portfolio over the next two to three years, it emphasised.

Cromwell European REIT was last done on the Singapore Exchange at EUR1.59, which presently implies a distribution yield of 10.81% according to data on the Singapore REITs table.

By Shariffa Al-Habshee

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