Further to the announcement dated 22 June 2021 titled “Divestment of a Non-Core Asset in France at c. 53% Premium to Purchase Price”, 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 the divestment of the property known as Parc de Popey asset located at 5 Chemin de Popey in Bar-le-Duc, France (the “French Asset”), has completed on 9 September 2021.
The French Asset has been divested for a consideration of €5.8 million, which is €2.0 million or c. 53% higher than the IPO purchase price, and €1.0 million or c. 21% higher than the most recent valuation of the French Asset.
The French Asset was independently valued by Savills Advisory Services Limited (independently commissioned by the Manager, in its capacity as manager of CEREIT and Perpetual Asia Limited, in its capacity as trustee of CEREIT) at €4.8 million as at 31 December 2020 using the discounted cashflow and income capitalisation methods.
While CEREIT remains a long-term holder of real estate, the sale of the French Asset is consistent with the Manager’s proactive asset management strategy to improve the risk-return quality of CEREIT’s portfolio. This is in line with CEREIT’s primary purpose to provide CEREIT’s unitholders with stable and growing distributions and net asset value per unit over the long term.