Cromwell European REIT plans to buy 11 new logistics and light industrial properties in the Czech Republic and Slovakia for €113.2 million ($183.6 million) – slightly below an independent valuation of €115.6 million.
The properties, which have a gross lettable area of 125,435 sq m, are now almost 100% occupied, with WALE of 6.2 years.
Simon Garing, CEO of the REIT manager, says that the acquisitions are in line with the REIT’s stated strategy to increase CEREIT portfolio’s exposure to stable, relatively high-yielding logistics and light industrial assets.
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Together with the other light industrial and logistics acquisitions in 2020, CEREIT has added a total of €220.2 million in light industrial and logistics assets to its 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,” says Garing.
“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,” he adds.
The acquisition is expected to be DUP-accretive at 4.9% and will generate a net operating income yield of 6.7%.
Upon completion of the acquisition, CEREIT’s exposure to the light industrial / logistics segment will increase from 32.3% to 35.8%
