Cromwell European REIT Continues Pivot To Logistics With EUR57.8 Million Of Acquisitions In The UK And The Netherlands

Cromwell EREIT Management Pte. Ltd., the manager (the Manager) of Cromwell European Real Estate Investment Trust (Cromwell European REIT or CEREIT) announced today that CEREIT has, through its indirect and wholly-owned subsidiaries, entered into three separate sale and purchase agreements for the acquisitions of three light industrial / logistics properties in Spennymore, Durham, North East England, the United Kingdom (the UK), in De Immenhorst 7, ‘s-Heerenberg, The Netherlands and in Rosa Castellanosstraat 4, Tilburg, The Netherlands (Thorn, s-Heerenberg and Tilburg respectively, collectively the Acquisitions), for an aggregate purchase price of €57.8 million (approximately S$88.4 million).

Key Highlights:

  • Blended 5.6% net operating income (“NOI”) yield and an aggregate purchase price of €57.8 million (S$88.4 million), 3.9% below the aggregate independent valuations undertaken
  • 65,360 sqm total floor area across the three properties, all fully-let on long-term single leases (with blended WALE of nearly 8 years) to three high-quality tenant-customers
  • Properties situated in strategic locations in the well-established and highly-liquid logistics markets of the UK and the Netherlands
  • Acquisitions funded through the recent successful S$100 million inaugural perpetual securities issue, which in Euro terms provide competitive funding at 3.55% per annum, allowing CEREIT to further capitalise on the exceptional logistics sector fundamentals and advance its Western Europe pipeline of opportunities

The Manager’s Chief Executive Officer, Mr. Simon Garing, commented, “I am pleased to announce the acquisitions of three light industrial / logistics assets in the well-established and highly-liquid real estate markets of the UK and the Netherlands. Our experienced, on-the-ground team sourced and secured all assets at a favourable blended 5.6% NOI yield and 3.9% below independent valuations on average.

“The acquisitions further build CEREIT’s light industrial / logistics scale in these markets accretively, bringing CEREIT’s portfolio to 41% light industrial / logistics weighting and advancing the Manager’s stated strategy of pivot to 50% weighting of this sector.

“The acquisitions have been funded from part of the proceeds of the recent successful S$100 million inaugural perpetual securities issue, which in Euro terms provide competitive funding at 3.55% per annum, allowing us to capitalise on the exceptional fundamentals of this sector while advancing the pipeline of opportunities we have identified for CEREIT in Western Europe”.

For further details, please refer to the attached media release and presentation deck.

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The Manager is committed to ensuring that CEREIT meets expectations of good corporate governance and sustainable business practices while seeking to achieve superior investor performance over the medium and long term.

The Board and the Manager are both proactive with respect to corporate governance and actively review developments to determine which corporate governance arrangements are appropriate for CEREIT and its investors.

The Code of Corporate Governance 2018 is adopted as the REIT's benchmark for corporate governance policies and practices.