UK-based global real estate investor Crescendo Real Estate Advisors has inked the first two purchases for its second €300 mln European logistics/industrial net lease fund, the Crescendo Preservation & Income Fund 2 (CPI 2).
Financial details were not disclosed.
CPI 2 has purchased the global HQ, R&D and manufacturing facility in Bologna, Italy of Ima, a manufacturer of automatic machines for the processing and packaging of pharmaceuticals, tobacco, cosmetics and tea. CPI 2 negotiated a new 15-year net lease.
In addition, CPI 2 has acquired an automotive equipment manufacturing facility in Oss, the Netherlands, in a sale leaseback with a global automotive parts manufacturer based on a 20-year net lease.
'These two deals illustrate that, despite Covid-19 or perhaps in part because of it, there are compelling mid-market industrial real estate deals in Europe to be done,' said Cresecendo co-founder Cabot Lodge.
Co-founder Daniel Quai added: 'We have a number of strong equity deals in our pipeline targeting sub-€50m that we feel avoids increased competition from larger players but still allows for a diversified portfolio of corporate obligations to be built.'
CPI 2 uses a sale and leaseback approach, where the fund buys mission critical logistics and industrial assets in Europe that are then leased back to high quality tenants on long-term net leases.
CPI 2’s portfolio manager Thomas Reckers said: 'Corporate sale and leaseback financing is relatively new to Europe, but long-established in the US.
'It is attractive to property owners that benefit from releasing value from their long-term real estate asset-base and attractive to investors who benefit from a high quality, recurring income stream from the sellers who are now tenants.'
CPI 2 is nearing its second close and is looking to acquire further real estate assets across Europe. The fund is on track to raise its target of €300 mln this year that it will invest across 15-20 industrial and logistics assets across Europe.
