SINGAPORE: Cromwell EREIT Management Pte. Ltd., the manager of Cromwell European Real Estate Investment Trust (CEREIT), has entered into agreements to acquire three freehold properties in France and three freehold properties in Poland. [the_ad id=”31605″]The Manager’s Chief Executive Officer, Simon Garing, commented, “Consistent with our commitment to deliver long-term 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. The acquisitions mark our entry into the office property market in Greater Paris, a Tier-1 European capital city.
“They also increase our exposure to Poland, which has an economy that has outperformed the Eurozone average as well as an office property market with robust fundamentals and a favourable outlook. In addition, they will enhance the portfolio’s geographical, tenant, and tenant trade sector diversity, providing CEREIT with greater resilience.”
Cromwell intends to finance the acquisitions of the New Properties via a combination of loans drawn from new debt facilities that are currently being established and the issuance of new CEREIT units pursuant to a private placement to raise gross proceeds of no less than approximately €100 million. Credit Suisse (Singapore) Limited and UBS AG, Singapore Branch are the joint lead managers and underwriters for the private placement.