The manager of Cromwell European REIT (CEREIT) has announced on Jan 5 that it has entered into sale and purchase agreements to acquire three logistics in the UK and the Netherlands for EUR57.8 million ($88.4 million).
“Our experienced, on-the-ground team sourced and secured all assets at a favourable blended 5.6% net operating income (NOI) yield and 3.9% below independent valuations on average,” says Simon Garing, CEO of the manager.
Post-acquisition, CEREIT’s light industrial and logistics portfolio weighting grows to 41%, in line with the manager’s stated strategy to pivot to a 50% weighing of this sector.
The acquisitions have been funded from part of the proceeds of CEREIT’s $100 million inaugural perpetual securities issue in November.
The three properties - one in the UK and two in the Netherlands - span a total of 65,360 sq m total floor area and are fully let on long-term single leases. The assets have a blended weighted average lease expiry of nearly 8 years to tenant-customers comprising global lighting solution supplier Thorn Lighting, e-retailer Kleertjes.com, and fashion company Agile.
The UK asset, Thorn, is a freehold property located in Durham, North England. Built in 2008, the property sits on a 135,820 sq m site and consists of two buildings with a total lettable area of 41,611 sq m.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
The two assets in the Netherlands are located in ‘s-Heerenberg and Tilburg respectively. The ‘s-Heerenberg property has a total floor area of 15,111 sqm and a site area of 21,913 sqm, while the Tilburg property has total floor area of 8,638 sqm and a site area of 14,139 sqm. Both assets are freehold properties.
The two Dutch acquisitions are CEREIT’s first in this market post-IPO, expanding its logistics portfolio in the Netherlands.
According to the manager, the acquisitions are not expected to have any material effect on CEREIT’s net tangible assets.
See also: IREIT signs 20-year lease contract with UK hotel chain, Premier Inn, in Berlin Campus
As at 9.06am, units in CEREIT are up 3 cents or 0.77% higher at $3.91.
Photo of Tilburg logistics asset: Cromwell European REIT
