SINGAPORE (THE BUSINESS TIMES) - Cromwell European Real Estate Investment Trust (Cromwell E-Reit) has entered into three separate sale and purchase agreements to acquire logistic properties in Britain and the Netherlands for an aggregate purchase price of €57.8 million (S$88.5 million), its manager said on Wednesday (Jan 5).

Mr Simon Garing, chief executive of the Reit's manager, noted that the acquisition further builds the Reit's light industrial scale in these markets accretively, and brings the weighting of its portfolio's logistic segment to 41 per cent.

The three properties have a blended net operating income yield of 5.6 per cent, and are fully let on long-term single leases with a blended weighted average lease expiry of around eight years.

British property Thorn - located in a developed industrial area in Spennymoor, Durham - has a total lettable area of 41,611 sq m and is leased to Thorn Lighting, a subsidiary of Austrian lighting company Zumtobel Group.

Thorn is a freehold property built on a 135,820 sq m site and has a low site coverage of 30 per cent, which presents a good future redevelopment opportunity, the Reit's manager noted.

One of the properties in the Netherlands, 's-Heerenberg, has a total floor area of 15,111 sq m and a site area of 21,913 sq m. The freehold property is located in the city of 's-Heerenberg - a logistic hub along the Dutch-German border - and is leased to Kleertjes.com, an e-retailer of children apparel.

Meanwhile, the other property in the Netherlands, Tilburg, has a total floor area of 8,638 sq m and a site area of 14,139 sq m. The freehold logistics property is located in the prime logistics region of Tilburg-Waalwijk, and is leased to fashion manufacturer and omnichannel retailer Agile.

The manager noted that the British acquisition's attractiveness is boosted by its strategic location in a well-established manufacturing hub, adding that it also benefits from a highly educated labour force.

As for the Dutch acquisitions, the manager said the Netherlands is a core market for western Europe supply chains, given its strategic connectivity between large ports and distribution networks and "record-low" logistics vacancy rates of around 2 per cent.

The acquisitions have been funded by part of the proceeds from its recent S$100 million perpetual securities issue. The manager expects the aggregate purchase cost will be around €62.4 million, which comprises the purchase consideration and acquisition fees payable.

The Reit's manager does not expect the acquisitions to have any material effect on the Reit's net tangible assets.

Units of Cromwell E-Reit closed flat at €2.53 on Tuesday.