Cromwell E-Reit to buy 3 German assets for $57m

The assets that Cromwell E-Reit is acquiring are located in the cities of Bretten (above), Pforzheim and Konigsbach-Stein, all within Germany's third-largest state, Baden-Wurttemberg.
The assets that Cromwell E-Reit is acquiring are located in the cities of Bretten (above), Pforzheim and Konigsbach-Stein, all within Germany's third-largest state, Baden-Wurttemberg.
PHOTO: CROMWELL E-REIT

Cromwell European Real Estate Investment Trust (Cromwell E-Reit) is buying three freehold light industrial/logistics assets in Germany for €38 million (S$57 million), the manager said yesterday.

The total cost is estimated at €40.9 million, comprising the €38 million purchase price and other fees and expenses. It will be funded by drawing on the trust's revolving credit facility.

The assets are owned by Felss Group, which makes machine tools and components.

The purchase price is 4 per cent below the independent valuation of the assets and below estimated replacement costs, the manager said.

There is a total of 29,734 sq m in gross lettable area - consisting of 19,016 sq m of warehouse space, 6,225 sq m of offices and 4,493 sq m of other spaces.

It will be fully let to Felss Group subsidiaries for a term of 15 years under lease agreements with no break clause.

The manager said the proposed acquisition is not expected to have any material effect on Cromwell E-Reit's net tangible assets.

The acquisition is expected to be completed in February next year.

Cromwell E-Reit units closed up 0.95 per cent at 53 cents after the announcement yesterday.

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A version of this article appeared in the print edition of The Straits Times on December 21, 2019, with the headline Cromwell E-Reit to buy 3 German assets for $57m. Subscribe