Cromwell European REIT (CEREIT) announced that its wholly-owned vehicle has entered into an agreement to acquire a freehold intermodal logistics park with nine warehouses and a freight railway terminal in Italy for €52.6 million (approximately S$84.2 million).
“I am delighted to announce CEREIT’s latest transaction – the acquisition of an Italian freehold intermodal logistics park of substantial size at a competitive price and an attractive 7.4% NOI yield. The deal was secured off-market, once again bearing testament to the sourcing capabilities of our extensive on-the-ground European team. We are pleased to welcome renowned Italian brands such as Tod’s, Eurospin and White Solution to our diverse tenant-customer roster,” said Simon Garing, The Manager’s Chief Executive Officer.
”The logistics park is expected to generate stable and recurring cash flows with scope for further rental upside and will increase CEREIT’s exposure to the resilient logistics sector, which is consistent with our stated purpose of delivering long-term distribution and net asset value per unit growth to unitholders,” he added.
The asset is a freehold intermodal logistics park with 156,888 square metres of NLA, spanning a 421,703 sq m site and built in stages between 1995 and 2006. It has nine warehouses with ample loading bays, an office building and a canteen. 18,000 sq m of its NLA is used for cold storage, which commands significantly higher rental rates than space used for general warehousing purposes. The asset also includes a railway with four tracks, each approximately 1 km long, with direct loading / unloading platforms and a freight terminal connected to national railway services.
The asset is over 99% let to a diverse tenant-customer base comprising 24 different occupiers, with four major ones being Spinservice and its parent brand Eurospin (which collectively account for 27% of gross rental income), Tod’s (20%), and White Solution (9%). Tod’s and Eurospin are long-time tenant-customers that have leased space at the Asset since 2006 and 2009 respectively, and Tod’s recently signed a lease agreement for an additional 3,000 sq m of space, further demonstrating its commitment to the location.
The asset is conveniently located in Monteprandone, a municipality in central Italy along the eastern Italian coast. Its proximity to the A14 / E55 motorway, which connects Bologna to Bari along the Adriatic coast, makes it a high-potential logistics location. As the main highway connecting Greece to Denmark, the A14 / E55 motorway is also an important trade corridor in Europe.
Cromwell European REIT (CEREIT) is the first REIT with a diversified pan-European portfolio listed on the Singapore Exchange Limited.