UPDATE: Cromwell European REIT acquires UK logistics property

Euro coinsPhoto by Leslie Shaffer

This item was originally published on Wednesday, 4 August 2021 at 8:59 a.m. SGT; it has since been updated to include more details. 

Cromwell European REIT has acquired a U.K. logistics property from a third-party seller for 10 million British pounds, or around 11.7 million euros or S$18.8 million, marking its first asset in the country, the REIT said in a filing to SGX Wednesday.

“We’ve been studying the U.K. market for some time and actively looking for accretive opportunities for CEREIT to make our entry, so I am pleased that we, as the manager of CEREIT, are able to deliver on our stated strategy in 2021,” Simon Garing, CEO of the REIT’s manager, said in the statement. “The acquisition further increases CEREIT’s exposure to light industrial/logistics property to 39 percent [up from 38 percent], accelerating CEREIT’s pivot towards logistics. We look forward to expanding our footprint in the U.K.”

The asset was independently valued by Savills Advisory Services at 10.3 million pounds, with the acquisition price marking a 3 percent discount to valuation and a 32 percent discount to replacement costs, Cromwell European REIT said.

The deal has been fully funded in cash, it said.

The property’s net operating income yield is attractive at 5.6 percent, the REIT said.

The property is 100 percent leased to a national third-party logistics tenant, Panther Warehousing, a business-to-consumer (B2C) home delivery company, the statement said. .

The asset is located in a prime logistics location near major cities Manchester and Liverpool, with good connectivity to motorway networks, airports and a port, Cromwell European REIT said.

The REIT’s portfolio has 109 properties, with an appraised value of 2.35 billion euros across the Netherlands, Italy, France, Poland, Germany, Finland, Denmark, the Czech Republic, Slovakia and the U.K.

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