Cromwell European REIT will receive compensation of 907,128 euros (S$1.4 million or US$1.03 million) from the French government for the loss of potential rents while the country deliberated on expropriating the Parc des Docks Saint-Ouen asset, the REIT said Monday.
Marketing and leasing activity for the property, located in Paris, had been placed on hold during the deliberations, the REIT said in a filing to SGX before the market open.
“We have now regained full control of our 10-hectare site and have renewed our marketing efforts to extend leases and secure new customers, leveraging Cromwell Property Group’s on-the-ground Paris team,” Simon Garing, CEO and executive director of the REIT manager, said in the statement.
“Current and prospective businesses have expressed strong interest in leasing space at the asset, given its ‘last mile’ location attracting logistics and e-commerce-related businesses,” he added. “Given the site’s excellent accessibility and proximity to the Paris central business district, significant rental reversion is also expected.”
Garing said the occupancy rate, currently at 83 percent, was expected to rise “substantially” this year.
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