Cromwell European REIT (CEREIT) has in the current 4QFY2024 secured new leases for five major properties with new and existing tenant-customers across both its logistics and office portfolios.
The properties take up a total of 78,000 sqm and will help keep CEREIT's portfolio occupancy rate above 93% and further build on CEREIT’s 3Q 2024 tenant retention rate of more than 70%.
“CEREIT’s logistics portfolio continues to perform well and the strong leasing momentum in this segment validates CEREIT’s pivot to logistics, with four of the five major leases secured being at logistics assets," says Simon Garing, CEO of the manager.
He adds that with average logistics vacancy rates of only 3.8% in the countries CEREIT is in and 8.8% rent reversion in 3Q 2024, there is still further potential for growth in this segment as the portfolio is still slightly under-rented with passing rents 7.4% lower than market rents.
As for office space, Garing says there is a limited availability of high-quality and green-certified buildings.
"As tenant-customers continue to target quality and good locations, CEREIT’s office portfolio occupancy rate has been stabilising above 90% in the last five quarters with a high office tenant retention rate of almost 88% in 3Q 2024.
See also: Manulife US REIT reports 9.3% drop in portfolio valuation, warns of FY2024 loss
"CEREIT will continue with its targeted asset enhancement initiatives to further future-proof our office portfolio and work closely with our tenant-customers to help them achieve their sustainability goals," says Garing.
The first of the five leases secured is a large office tenancy renewal at Bastion in 's-Hertogenbosch, the Netherlands. The tenant is Essent, a leading Dutch energy utility company, which is part of the German E.ON Group.
The second lease at Spennymoor in the UK. The tenant is Thorn Lighting, a leading manufacturer of lighting solutions.
See also: Stoneweg European REIT reports 0.3% growth in valuations for six months to December 2024
The is for a logistics lease renewal at Frickenhausen in Germany with Dropsa BM GmbH, a manufacturer and supplier of lubrication systems.
The fourth and fifth leases are in Denmark. The clients are GMT Robotics and Cryptera, a Danish state-of-the-art security technology and payment solutions company.
CEREIT closed at €1.58 on Dec 17, up more than 12% year to date.
