Cromwell European REIT has signed the acquisition of a portfolio of 11 logistics and light industrial assets in the Czech Republic and Slovakia from Arete Group’s second fund for a price of €113 mln.
The transaction – the second largest in the Czech Republic this year - reflects a net operating income yield of 6.7% and is expected to close in Q1 2021.
The portfolio is almost 100% occupancy let to 17, mainly international tenants. It has a total leasable area of 125,000 m2, in addition to 140,000 m2 for further development and future growth.
‘This step represents a significant milestone in our fund strategy and proves that our defined target in 2016 , to build and compile a portfolio of quality logistics and light industrial assets throughout a 5 year investment cycle, is now delivered on. It also clearly demonstrates that through consistent approach, the portfolio meets high quality standards demanded by institutional investors such as Cromwell European REIT, a listed and publicly traded REIT on Singapore stock exchange. Consistency and transparency always were and will remain to be key fundamentals of our strategy and we intend to retain and further enhance those in our third fund, Arete Industrial, which currently initiated its investment phase,’ commented Robert Ides, co-founder of ARETE group.
Karol Pilniewicz, head of Central Eastern Europe (CEE) for Cromwell Property Group said: ‘We are delighted to be able to support CEREIT on this transaction. We are actively looking for acquisitions for a range of different capital partners, mainly in Poland, Czech Republic and Slovakia with a particular focus on core plus, value-add and opportunistic opportunities.’
JLL brokered the deal.
