The manager of Cromwell European Real Estate Investment Trust (CEREIT) has entered into a promissory deed with an affiliate of a European real estate investment fund to divest its Parc de Popey asset for EUR5.8 million (approximately $9.3 million).
The asset, located at 5 Chemin de Popey in Bar-le-Duc, France, consists of a single large warehouse building with ancillary office accommodation totalling some 15,724 sqm.
The asset was built in 1995 and is currently occupied by a major postal service and logistics company which is largely owned by the French government. The building is used as an industrial sorting parcel platform.
The sale consideration will be satisfied fully in cash and represents a 53% premium to the IPO purchase price, as well as a 21% premium to its most recent valuation.
The divestment is expected to be completed in 3Q2021 and is not expected to have any material effect on CEREIT’s net tangible assets.
The manager says the sale of the asset is consistent with its proactive asset management strategy to improve the risk return quality of CEREIT’s portfolio.
See also: Cromwell European REIT acquires Czech logistics asset for $16 mil
The manager’s CEO Simon Garing comments, ““I am pleased that we are able to announce this planned divestment of one of CEREIT’s small non-core assets shortly after our acquisition of a modern freehold logisticswel asset in the Czech Republic.”
“Parc de Popey is located 250 km east of Paris, France and Cromwell Property Group’s French asset management team was able to secure a lease extension recently from the sitting tenant-customer on terms ahead of the valuers’ estimated rental value,” he adds.
As at 11.27am, units in CEREIT are up 1 cent or 0.43% higher at EUR2.36.