Cromwell E-REIT divests Italy asset for $135.4m

Viale Europa represents 6.9% of the REIT’s net asset value.

Cromwell European REIT (CEREIT) has divested one of its largest non-core “other” assets, Viale Europa, for $135,4m (€94.0m).

In a bourse filing, CEREIT said it sold the property in Bari, Italy to the Italian State Property (Demanio dello Stato) of Bari Europa.

Simon Garing, CEO of the REIT’s manager, said the divestment is consistent with CEREIT’s “previously stated strategy of targeted asset sales, reducing exposure to the office and ‘other’ sectors and focusing more on the logistics/light industrial asset class.”

“We have so far completed €187.6m ($270.7m) of divestments in 2023, at a healthy €17.4m ($25m) or average 10.2% premium to December 2022 valuations, representing almost half of our targeted €400m ($577m) divestment programme to 2026,” Garing said.

Post divestment, CEREIT’s proforma NAV / Unit would have increased by €0.036 and aggregate leverage would have fallen to 36.8%.