Cromwell European REIT has acquired three light industrial/logistics properties, two in Italy and one in Germany — for EUR68.3 million, or around S$105.5 million, the Europe-focused REIT said in a filing to SGX Friday.
The pricing of the deal is 12.7 percent below the total independent valuations, the REIT said.
Two properties are located in Northern Italy, in strategic logistics/manufacturing locations, while the German property is in the biotech city Jena, the filing said.
The deal was funded via a combination of existing cash balances and a draw-down from a revolving credit facility, the REIT said.
Simon Garing, the CEO of the REIT’s manager, said the assets were in well-established and highly liquid real estate markets, and the properties are fully leased to global companies, including ABB, Bialetti and Abbott Diagnostics.
“The addition of these properties brings CEREIT’s portfolio to a 43 percent light industrial / logistics weighting, in line with the manager’s stated strategy to pivot towards a majority weighting in this sector,” Garing said in the statement.