Cromwell European REIT buys three warehouses for £48m

An investment trust managed by Cromwell EREIT has completed €57.8m (£48.3m) of light industrial acquisitions in the UK and the Netherlands. The REIT bought one property in the north-east of England and two in the Netherlands. Combined, the deal reflected an average 3.9% discount to market value. The UK acquisition is the biggest of the trio, with a lettable area of 447,897 sq ft. It is located in Durham and is let to lighting supplier Thorn Lighting. The three properties have a total floor area of 703,529 sq ft and are let on long-term single leases with blended weighted average lease expiry of nearly eight years. The properties were secured at a blended 5.6% net operating income yield. One of the logistics facilities in the Netherlands, in ‘s-Heerenberg, has a total floor area 162,653 sq ft and is let to e-tailer Kleertjes.com. The other, in Tilburg, totals 92,979 sq ft and is occupied by Agile, a fashion conglomerate. The acquisitions expand Cromwell European REIT’s portfolio weighting to the  logistics sector to 41%. The company is targeting a 50% weighting to this sector in the near term. The acquisitions have been funded from part of the proceeds of the company’s recent fundraising. To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @Gre_Eve or @EGPropertyNews