CEREIT navigates illiquid Central Europe market with Warsaw office divestment
The REIT divested the property for $23.1m.
Cromwell European REIT (CEREIT) divested an office asset Grojecka 5 (G5), Warsaw, Poland, for €15.86m ($23.1m).
In a bourse filing, the REIT said it completed the divestment “at a 7.5% premium to the latest valuation despite the relative illiquidity in the Central European real estate markets and record-low transaction activity in Europe.”
With the divestment, the REIT has reduced its portfolio's exposure to Poland to 7.4% from 8.1%.
The divested property was an office building with 10,864 sqm of net lettable area, eight floors, and 105 parking spaces. Solida Capital Europe acquired the asset.
CEREIT and Solida Capital Europe agreed on a deferred payment mechanism for the sale of G5.
Under the agreed mechanism, Solida Capital Europe can delay paying €4.36m ($6.4m) out of the €15.86m ($23.1m) purchase price until end-September, with a premium applied for the deferred period at market rates.
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