Cromwell European Real Estate Investment Trust (CEREIT) is planning a to raise at least €100m by way of a private placement to part fund the acquisition of €246.9m worth of properties in France and Poland.
CEREIT’s manager Cromwell EREIT Management said it has agreed to buy three properties each in France and Poland, a deal which represents the firm’s entry into the greater Paris office market and increases its presence in the Polish office market.
The manager intends to finance the acquisitions through a combination of loans drawn from new debt facilities and via a private placement to raise gross proceeds of no less than €100m.
Cromwell EREIT Management said it may decide to increase the size of the placement to raise additional gross proceeds of up to €50m.
The France properties comprise three predominantly office properties located in or near major business districts, such as Ivry-sur-Seine, La Défense, and Charles de Gaulle Étoile. In aggregate, they have a net lettable floor area spanning 33,786sqm and a 95.9% occupancy rate.
The Poland properties comprise two predominantly office properties in Kraków, and one office property in Poznań. They have an aggregate area spanning 76,562sqm and a 100% occupancy rate as at 1 March this year.
Following the acquisitions, CEREIT’s portfolio will increase from 97 properties with an appraised value of approximately €1.8bn to 103 properties with an appraised value of approximately €2bn, the manager said.
Simon Garing, CEO of Cromwell EREIT Management, said: “Consistent with our commitment to deliver long-term distribution per unit (DPU) and net asset value growth, the acquisitions are expected to be DPU-accretive and to strengthen CEREIT’s portfolio.
“Capitalising on the low-interest rate environment in Europe as well as the sponsor’s pipeline sourcing and execution capabilities, we have successfully negotiated deals to buy the new properties below replacement costs and at attractive yields.”
An earlier version of this story misstated the total lettable floor area for the three Poland properties.