Cromwell European REIT has entered a deal to acquire an office property in Agrate, Italy, from Italian alternative investment fund C3 Investment Fund – FIA for 17.7 million euros, or around S$26.6 million, the REIT said in a filing to SGX Friday.
“The property, located in the Greater Milan metropolitan area, complements the current office portfolio of CEREIT in Italy in terms of lease length term, further enhancing the stability of the CEREIT portfolio’s cash flows and bringing further diversification to its tenant-customer base,” the REIT said.
The REIT said it will fund the cost from available cash, mainly from the proceeds of the recent sale of the Parc d’Osny property, the filing said.
The property includes an eight-storey office building with one basement level, and it is connected to three adjoining blocks at various floors, the filing said.
The three principal tenants are responsible for slightly more than 50 percent of the property’s income, with the occupancy at nearly 100 percent, Cromwell European REIT said.
The building is situated in Colleoni Business Park, Agrate Brianza, in the province of Monza Brianz, north-east of Milan, Cromwell European REIT said.
The tenants are provided with 182 parking spaces and a public shuttle service to nearby underground stops, the REIT said.
Colliers International Valuation UK has valued the property at 17.7 million euros as of 22 November, the filing said.