Cromwell EREIT buys three German office and warehouse assets for $57m

It comprises 19,016 sqm GLA of warehouse space and 6,225 sqm of office space.

Cromwell European REIT (CEREIT) will buy a portfolio of three light industrial and logistics assets in Germany from subsidiaries of construction firm Felss Group for $57m (€38.0m), according to a press release.

The portfolio spans 29,734 sqm of gross lettable area (GLA) comprising 19,016 sqm of warehouse space, 6,225 sqm of office space and 4,493 sqm of other spaces on sites totalling 48,131 sqm.

The assets are located in the cities of Pforzheim, Bretten and Königsbach-Stein, within Germany’s third-largest state, Baden-Württemberg, and near the state’s capital, Stuttgart.

These will be fully let to subsidiaries of Felss Group for a term of 15 years under lease agreements concluded on a triple-net basis. The tenant-customer will provide a 12-month rental security under the form of either a deposit or a first demand bank guarantee.

The total cost of the acquisition is estimated to be $61.4m (€40.9m). It will be funded by drawing on CEREIT’s revolving credit facility.

The acquisition is expected to be completed in February 2020.