Cromwell E-Reit sells off France asset at €5.8m
The sale is 53% higher than the IPO purchase price.
The Cromwell European Real Estate Investment Trust has sold off the Parc de Popey asset located at 5 Chemin de Popey in Bar-le-Duc, France for €5.8m ($$9.3m) to an undisclosed buyer.
In a filing, Cromwell E-Reit’s manager Cromwell EREIT Management Pte. Ltd said that the sale is 53% higher than the IPO purchase price and 21% higher than the most recent valuation of the property.
The asset consists of a single large warehouse building with ancillary office accommodation totaling c. 15,724 sqm built in 1995. Currently occupied by a major postal service and logistics company which is largely owned by the French government, it is used as an industrial sorting parcel platform.
The property is located in the centre of the ‘Grand Est’ region in the east of France, approximately 75 km from Nancy, Metz and Reims. The property is situated at the entrance of Bar-le-Duc within the extension of the main business district. The train station of Bar-Le-Duc is approximately 2.3 km away.
“I am pleased that we are able to announce this planned divestment of one of CEREIT’s small non-core assets shortly after our acquisition of a modern freehold logistics asset in the Czech Republic. Parc de Popey is located 250 km east of Paris, France and Cromwell Property Group’s French asset management team was able to secure a lease extension recently from the sitting tenant-customer on terms ahead of the valuers’ ERV. The sale, which is at a 53% premium to the initial public offering (“IPO”) purchase price and a 21% premium to the latest valuation respectively, further demonstrates our ability to realise value and recycle capital effectively,” the manager’s chief executive officer, Simon Garing said.
According to the manager, the sale will not have any material effect on Cromwell E-Reit’s net tangible assets.