Cromwell Property has sold a 50% stake in its Italian urban logistics fund to Hong Kong-based Value Partners for €27.9m.
Cromwell said the deal which values the Cromwell Italy Urban Logistics Fund’s portfolio at €55.8m reflected an approximate 9.4% increase on Cromwell’s initial purchase price.
The seven assets, let to DHL, are located in northern Italy, near the key transport hubs of Milan, Turin, Bologna and Verona.
Cromwell CEO, Jonathan Callaghan, said the Italian assets were identified as non-core to Cromwell’s business in 2022, and, as a result, Cromwell actively marketed the assets for sale or co-investment.
“We will continue to focus on simplification of the business through our non-core asset sale process, including those assets in the Cromwell Polish Retail Fund, as well as some additional non-core assets in Australia, applying proceeds to debt reduction in the first instance to ensure security through an ongoing difficult operating environment,” Callaghan said.
The acquisition is Value Partner’s first investment in Europe.
Rachel Tong, managing director and head of real estate private equity for Value Partners Group, said: “This expansion and geographical diversification of our logistics portfolio will deliver exciting opportunities for growth and profitability for our investors. Italy is an important logistics hub in Europe. We are confident of stable returns.”
Lorenzo Caroleo, head of Italy at Cromwell, said: “The joint venture with Value Partners will allow us to grow this portfolio with selective acquisitions of urban/last mile logistics assets, leased to occupiers with strong covenants and located near the major urban hubs of Italy and other cities in Europe.
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