Cromwell EREIT Management Pte. Ltd., the manager of Cromwell European Real Estate Investment Trust (Cromwell European REIT or CEREIT), has entered into a framework agreement to indirectly acquire a portfolio comprising 11 logistics and light industrial properties in Czech Republic (six properties) and Slovakia (five properties) for €113.2 million, on a net operating income yield of 6.7% and at 2.1% below the independent valuation of €115.6 million.
The acquisitions are all freehold properties, almost 100% occupied by 17 mostly logistics tenant-customers and featuring a long-weighted average lease expiry of 6.2 years and weighted average lease break of 5.9 years.
The new acquisitions total 125,435 square metres gross lettable area of modern construction logistics and light industrial properties with a weighted average age of eight years, located in good micro-locations in established business parks with access to public transport and in immediate proximity to major highways.
The new acquisitions also feature three assets with a total of approximately 140,700 sqm of land permitted for development.
“The acquisitions are in line with the Manager’s stated strategy to increase CEREIT portfolio’s exposure to stable, relatively high-yielding logistics and light industrial assets. Together with the other light industrial / logistics acquisitions in 2020, the Manager has added a total of €220.2 million in light industrial / logistics assets to CEREIT’s portfolio, all acquired off-market. We are pleased to welcome 17 largely multinational logistics, e-commerce and manufacturer tenant customers to our diverse tenant-customer roster. We’ve also further established CEREIT’s presence in Central Europe, specifically in the emerging markets of Czech Republic and Slovakia, which are expected to benefit from further integration with neighbouring Western European economies,” said Simon Garing, CEO of the Manager.