Cromwell European REIT (CEREIT), through an indirectly wholly-owned subsidiary, has acquired a freehold logistics asset in the UK for £10 million (approximately €11.7 million or S$18.8 million), reflecting a 3% discount to valuation and 32% discount to replacement cost.
“I am delighted to announce CEREIT’s first acquisition in the UK – a freehold logistics property fully-let for a 10-year lease to a national 3PL tenant-customer in an excellent established UK logistics location. We’ve been studying the UK market for some time and actively looking for accretive opportunities for CEREIT to make our entry, so I am pleased that we, as the manager of CEREIT, are able to deliver on our stated strategy in 2021. The acquisition further increases CEREIT’s exposure to light industrial / logistics property to 39%, accelerating CEREIT’s pivot towards logistics. We look forward to expanding our footprint in the UK, in line with the stated strategy. Cromwell Property Group’s experienced local, on-the-ground team has once again proven their local asset management capabilities and was instrumental in securing this deal amidst the highly-competitive property market in the UK,” SAİD Simon Garing, Chief Executive Officer.
A freehold single-story logistics building with 9,764 square metres of net lettable area and spanning a site area of 20,438 sqm, the Asset was originally constructed in 1980 and was recently refurbished this year ahead of the new lease.
It has 86 parking spaces, dual-access loading with three dock-level and 14 floor-level loading doors and a manoeuvring area with 60 metres yard depth.
The ssset is 100% occupied by Panther Warehousing Ltd, the UK’s leading two-man B2C7 premium home delivery specialist, with a long-weighted average lease expiry profile of 10 years till May 2031.
Cromwell European REIT said the acquisition has attractive 5.6% net operating income (NOI) yield.
Situated within the logistics location of Kingsland Grange Industrial Estate in Warrington, North West England, the ssset is well-positioned in an ideal distribution location for UK logistics and industrial occupiers.
It is adjacent to two of the most important motorways in the UK – the M6, which provides direct access to Birmingham, the second-largest city in the UK, and to the north and south through the wider motorway network, as well as the M62 motorway which links Liverpool on the West Coast to the East Coast via Manchester.