Cromwell European REIT: €113.2 million acquisition of 11 assets in the Czech Republic and Slovakia

Cromwell EREIT Management Pte. Ltd., the manager (the “Manager”) of Cromwell European Real Estate Investment Trust (“Cromwell European REIT” or “CEREIT”), today announced that it will be acquiring a portfolio comprising 11 logistics and light industrial properties in the Czech Republic and Slovakia for an aggregate purchase price of €113.2 million, on a net operating income yield of 6.7%.

Key highlights:

  • Aggregate purchase price is 2.1% below the independent valuation of €115.6 million
  • Acquisition is DPU-accretive at 4.9%
  • Acquisition will increase CEREIT’s exposure to the light industrial / logistics segment from 32.3% to 35.8%
  • Modern institutional grade freehold properties, almost 100% occupied by 17 predominantly logistics tenant-customers with a long WALE of 6.2 years
  • Properties span a gross lettable area of 125,435 sq m, have a weighted average age of eight years, and include ~140,700 sqm of land permitted for development
  • The Czech Republic and Slovakia boast higher GDP growth figures, with Oxford Economics forecasting 4.0% real GDP growth in Czech Republic and 5.3% in Slovakia next year, driven by high levels of Industrial production forecast at 8.3% and 9.3% respectively

Mr. Simon Garing, CEO of the Manager, said: “The acquisitions are in line with the Manager’s stated strategy to increase CEREIT portfolio’s exposure to stable, relatively high-yielding logistics and light industrial assets. Together with the other light industrial / logistics acquisitions in 2020, the Manager has added a total of €220.2 million in light industrial / logistics assets to CEREIT’s portfolio, all acquired off-market. We are pleased to welcome 17 largely multinational logistics,  e-commerce and manufacturer tenant customers to our diverse tenant-customer roster. We’ve also further established CEREIT’s presence in Central Europe, specifically in the emerging markets of Czech Republic and Slovakia, which are expected to benefit from further integration with neighbouring Western European economies.”