The manager of Cromwell European REIT (CEREIT), on April 22, announced that it has acquired three light industrial/logistics properties in Italy and Germany for a total consideration of €68.3 million ($101.5 million).

The REIT, through its indirect and wholly-owned subsidiaries, entered into three separate sale and purchase agreements (SPA) for the properties. Two of the properties are in Italy, while the third is located in Germany.

Of the two Italian properties acquired, one is in Vittuone, Milan and the other is in Coccaglio, Brescia. The property in Germany is located in Löbstedter Str. 101-109, Jena.

The properties have a blended 6.8% net operating income yield, are 100% occupied, and come with a blended weighted average lease expiry (WALE) of 5.4 years.

All three properties are freehold and span 126,752 sqm in total gross lettable area. The property in Vittuone, Milan was independently valued at €29.4 million, while the property in Coccaglio, Brescia is valued at €30.6 million. The property in Jena is valued at €18.3 million. All three were valued independently by CBRE.

According to Simon Garing, CEO of the manager, the acquisitions are part of the €100 million advanced pipeline that was announced during the REIT’s FY2021 results. It will also further build to its light industrial/logistics scale in core Western European countries.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/reits/proxy-advisor-says-vote-all-three-resolutions-manulife-us-reits-egm?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Proxy advisor says vote FOR for all three resolutions at Manulife US REIT’s EGM </a></b></span>

The addition of these properties will bring CEREIT’s portfolio to a 43% light industrial/logistics weighting, in line with the REIT manager’s strategy to pivot towards a majority weighting in the sector.

The acquisitions will be funded through a mix of CEREIT’s existing cash balances. It will also be funded by drawing down on CEREIT’s indirect and wholly-owned securitisation vehicle’s revolving credit facility.

Units in CEREIT closed at €2.30 on April 21.

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