Cromwell E-Reit buys France logistics property for 6.9m euros, three Poland properties for 69.38m euros

SINGAPORE - Cromwell European Reit (E-reit) has acquired a logistics property located in france for 6.9 million euros (S$10.58 million) and three office assets in Poland for 69.38 million euros.

The acquisitions are part of the Reit's (real estate investment trust) larger acquisition of 23 properties across five countries in Europe for 384.4 million euros, announced last October.

According to the Reit's exchange filings on Friday (Feb 15), the logistics property lies in Gennevilliers, an established industrial area with grade A tenants such as Chronopost, Thalès, DHL and Geodis. It was built in 2003 and comes with a 29-year residual term.

Comprising 7,620 square metres of lettable area, the building is fully let to GRDF, a French state backed company. Its weighted-average lease expiry by headline rent is 2.5 years.

Cromwell E-Reit said the Gennevilliers property will increase the Reit's portfolio valuation by 0.4 per cent. The property also has a net initial yield of 9.9 per cent, compared to the 7.1 per cent net initial yield of the Reit's existing light industrial and logistics portfolio.

Independent property valuer Colliers International Valuation UK had valued the property at 6.8 million euros, based on the income capitalisation method taking into account comparable market transactions.

The acquisition was financed mostly by proceeds of Cromwell E-Reit's 224.1 million euro, 38-for-100 rights issue. The balance of 0.5 million euros was funded from internal cash resources.

 
 

In addition, Cromwell E-Reit said it completed the acquisition of the three Polish properties on Thursday. Some 35.25 million euros of the acquisition was funded by the proceeds of the rights issue. The remaining 34.13 million euros were funded by debt facilities.

Taken together, the Reit's portfolio will now comprise 97 properties in Denmark, Finland, France, Germany, Italy, the Netherlands and Poland.

Separately, Cromwell E-Reit also said it did not go through with acquiring a French property located in Aulnay-sous Bois as it "could not be satisfied with the outcome of the detailed due diligence". The property had been part of the Reit's larger acquisition of 23 properties and was expected to cost 6.1 million euros.