Cromwell European Real Estate Investment Trust (CEREIT) said Thursday that 95 properties in its portfolio have been valued at an aggregate of €2,125 million as at 31 December 2020, according to independent valuations by CBRE and Savills.
CEREIT said it represents an overall fair value increment of €45.4 million or an increase of 2.2% over the previous valuation as at 30 June 2020. The total valuation increment for the financial year ended 31 December 2020 was €20.5 million.
The revaluation gain was driven by the logistics / light industrial sector which continued to outperform with a fair value gain of €57.8 million, while office and other sector slightly underperformed with fair value losses of €8.5 million and €3.9 million respectively.
The remaining property in CEREIT’s portfolio, Centro Logistico Orlando Marconi property in Central Italy, which was acquired on 23 December 2020, was carried at its purchase price as the best approximation of fair value. Based on the latest valuations, CEREIT’s portfolio is valued at an initial yield of 6.2% with a reversionary yield of 6.5% which results in an expectation of growth on average when leases are renewed at expiry and the remaining vacancy is leased up in the future.
“It’s very pleasing to see a positive valuation outcome for CEREIT’s portfolio at the end of 2020. The past year has been one of unprecedented global market disruption and it is a testament to the diversification and resilience of CEREIT’s portfolio and capabilities of Cromwell’s Asset Management teams to end the year with an uptick in valuations. CEREIT’s valuations have now grown by €169.5 million or 8.4% over the respective purchase prices, in part also to our ability to negotiate off market acquisitions,” said Simon Garing, CEO of the Manager.