Acquisition Of Property In Gennevilliers, France, Completion Of Acquisition Of 3 Assets In Poland


Cromwell EREIT Management Pte. Ltd., in its capacity as manager of Cromwell European Real Estate Investment Trust (“CEREIT”, and the manager of CEREIT, the “Manager”), wishes to announce that CEREIT, through its indirect wholly owned subsidiary, Parc Logistique SAS, has on 14 February 2019 entered into an asset purchase agreement (the “APA”) with Challenger DPG France II SAS (the “Vendor”) and completed the acquisition of the logistics property located in Gennevilliers, France (“Gennevilliers”) for an aggregate purchase consideration of €6.9 million (the “Acquisition”).

The Manager has agreed with the vendor that the French property located in Aulnay-sous- Bois (“Aulnay”), which was under an option as referred to in the announcement dated 30 October 2018 titled “Announcement – (1) Acquisition of a Portfolio of 16 Office Assets in Netherlands, Finland, and Poland; (2) Acquisition of Two Office Assets in Italy; and (3) Binding Offer to Acquire Four Logistics Assets and Option to Acquire One Retail Big Box in France” (the “30 October 2018 Announcement”) and the announcement dated 24 December 2018 titled “Acquisition of All the Shares of Challenger DPG France SAS Which Holds the Properties Located in Villeneuve-Lès-Béziers, Parcay-Meslay, and Sully-Sur- Loire In France” (the “24 December 2018 Announcement”), will not be acquired as the Manager could not be satisfied with the outcome of the detailed due diligence. As Aulnay is relatively small with an expected purchase price of €6.1 million indicated in the 30 October 2018 Announcement, the Manager electing not to proceed with this acquisition does not materially affect the pro forma financial effects of the transactions disclosed in the 30 October 2018 Announcement.

Additionally, while the 24 December 2018 Announcement contemplated a share acquisition of the holding company of Gennevilliers, Gennevilliers was acquired through an asset acquisition as a share deal would have involved acquiring the company which holds both the Gennevilliers and Aulnay properties. An asset acquisition was the structure originally contemplated in the 30 October 2018 Announcement.


Further to the 30 October 2018 Announcement, the Manager is pleased to announce that CEREIT has on 14 February 2019, through its wholly owned subsidiaries, Cromwell SG SPV 3 Pte. Ltd., Cromwell EREIT Lux 3A S.à r.l., Riverside PL Propco S.à r.l., Grojecka PL Propco S.à r.l., and Arkonska PL Propco S.à r.l., completed the acquisition of the three office assets in Poland (the “Polish Properties”).

The total cost of the acquisition of the three office assets in Poland is €69.38 million (comprising the purchase consideration for the Polish Properties of €68.81 million and professional and other fees and expenses of €0.57 million). €35.25 million was funded by the proceeds of the Rights Issue and the balance of €34.13 million was funded by debt facilities.

Following the completion of Gennevilliers and the Polish Properties, CEREIT’s portfolio will now comprise 97 properties in Denmark, Finland, France, Germany, Italy, the Netherlands, and Poland.

Further information on these acquisitions, including the SGX announcement are available in our Investor Relations section here.