The manager of Cromwell European REIT has agreed to divest its assets in Finland and Italy for a total consideration of EUR7.2 million ($10.5 million). The sum represents blended 2.1% premium to the assets’ latest valuations.
The REIT announced, on April 29, that it has entered into two separate sale and purchase agreements (SPAs) to divest an office asset located at Kielotie 7 in Vantaa, Finland (Grandinkulma) and an “others” asset located at Via Brigata Padova 19 in Padova, Italy (Padova).
The divestment of Grandinkulma has been completed and sold to a local real estate developer. The property was valued independently by Savills at EUR5.6 million as at Dec 31, 2022. It is divested for EUR5.4 million.
The divestment of Padova has also been completed. The property was valued at EUR1.45 million as at Dec 31, 2022 and divested for EUR1.8 million.
The divestments, along with the sale of Grojecka 5 in Poland, has lowered the REIT’s exposure to Poland and Finland by 1.7 percentage points to 10.4%, down from 12.0% at the end of 2022. It has also increased the REIT’s logistics and light industrial weighting to 53.2%, up from 53.0% as at March 31.
Grandinkulma was built in 1984 and spans a total area size of 6,191.4 sqm. The property is located in Tikkurila, Vantaa, near Ring Road III and the Tikkurila train station and travel centre, near the Helsinki-Vantaa airport.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
Padova is a complex of three standalone buildings with varying heights of one to seven storeys. They are connected through an above-ground passage on the first floor, with a basement level comprising warehouses and nine outdoor parking spaces. The property is located in Padua, Veneto, and has been used as barracks by the Italian Gendarmerie.
The manager will receive a divestment fee of EUR0.04 million, representing 0.5% of the sale consideration, in accordance with the REIT’s trust deed.
Units in Cromwell closed at EUR1.46 or $2.13 on April 26.
