Cromwell European REIT (CEREIT) has acquired a logistics asset in the Czech Republic from an affiliate company of CEREIT’s sponsor Cromwell Property Group for EUR10.1 million (approximately $16.4 million).
The asset, located in an established industrial park within Hradec Králové in the north-east of the Czech Republic, is a freehold single-story logistics building with a two-story office section.
The building spans 8,382 square metres (sqm) on a site area of 31,557 sqm, with external areas accommodating 168 outdoor parking spaces.
The building is less than three years old and built to premium specifications by LinkCity, a subsidiary of Bouygues Group in a joint venture with Cromwell Group.
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The asset is being acquired at an accretive net operating income (NOI) yield of 6.4% with long weighted average lease expiry (WALE) profile of 6.5 years, as compared to CEREIT’s existing portfolio’s NOI yield of approximately 6.1% and WALE profile of 4.8 years.
It currently has an occupancy rate of 97.3% across three tenants - Dachser, Gebrueder Weiss and Buehler Motor.
The total cost of the acquisition of EUR10.7 million will be funded through CEREIT’s cash reserves. The acquisition is not expected to have any material impact on CEREIT’s net tangible assets.
Simon Garing, CEO of the manager says the asset complements CEREIT’s recently completed acquisition of 11 industrial and logistics assets in the Czech Republic and Slovakia.
“Our focus remains on rebalancing CEREIT’s portfolio towards 50% exposure to quality light industrial / logistics assets, including in the post-Brexit UK, while divesting a number of office and other non-strategic assets,” Garing adds.
The manager also highlighted that the asset will improve CEREIT’s portfolio from a sustainability perspective as it has a “Very Good” Building Research Establishment Environment Assessment Method (BREEAM) rating and is certified with an Energy Performance of “Level A – Extremely Efficient”.
As at 9.17am, units in CEREIT are up 1 cent or 0.44% higher at EUR2.28.
Photo: The manager of CEREIT
