Cromwell E-REIT acquires 23 properties in Europe for $603.62m

They have a combined net lettable floor area of around 150,235 sq m.

Cromwell European REIT bought 23 properties across The Netherlands, Finland, Poland, and France for $603.62m (EUR384.4m), an announcement revealed.

Out of the 23 newly acquired properties, 16 are offices with two located in the Netherlands, 11 located in Finland, and three located in Poland. They are situated on either freehold or freehold-equivalent land in cities and are enjoy accessibility to major transport infrastructure, including key airports, railway and train stations, as well as motorways.

Together, the new properties have an aggregate net lettable floor area (LFA) of about 150,235 sq m. Their average occupancy rate stands at 84.5% whilst their weighted average lease expiry is at 4.7-years as of August.

The properties bought in Italy comprise a freehold office building located in Bari which is the second most important economic centre of southern Italy, and a freehold office building located in Genova. They have an LFA of approximately 27,211 sq m and are master leased to Agenzia del Demanio, which is the entity in charge of managing the real estate assets of the Italian State.

Meanwhile, the firm’s newly acquired properties in France include four predominantly logistics properties and one DIY home improvement centre located along the strategic French logistics corridor, giving the firm an exposure to the Greater Paris logistics market.

According to the firm, four of the French Properties are situated on freehold land whilst one sits on a site with a 29-year residual term. All of them have a combined LFA of approximately 42,322 sq m which are fully occupied and have a 2.5-year WALE as of end-August.

The firm believes that the Acquisitions will provide them with access to the attractive office markets in Finland and Poland which are both experiencing robust growth. The transaction will also strengthen their positions in the Dutch and Italian office markets as well as the French logistics market.