CEREIT secures foray into UK Logistics
Cromwell European REIT takes the first step towards establishing a foothold in the logistics industry.
Cromwell EREIT, manager of Cromwell European Real Estate Investment Trust (CEREIT) Management Pte, announced that a sale of a logistics asset from the UK took place.
In a media release, the asset is described as a single-story building close to the cities of Liverpool and Manchester with access to both the M6 and M62 motorways. The value of the location, as determined by Savills Advisory Services Limited, placed it at $19.4m. The location also maintains a “C” Energy Performance Certificate Rating.
CEREIT’s CEO Simon Garing explained that this move is the start of an opportunity for the company and fulfilment of their strategy for 2021.
“I am delighted to announce CEREIT’s first acquisition in the UK – a freehold logistics property fully-let for a 10-year lease to a national Page 2 3PL5 tenant-customer in an excellent established UK logistics location," Garing said.
"We’ve been studying the UK market for some time and actively looking for accretive opportunities for CEREIT to make our entry, so I am pleased that we, as the manager of CEREIT, are able to deliver on our stated strategy in 2021," he added.
The acquisition has a projected net operating income of 5.6% and resulted in an increase of CEREIT’s portfolio in light industrial/logistics to 39%, up from 38%. This also marks the continuation of CEREIT’s long term goal, as their investment strategy is to move towards a 50% exposure in logistics.
Workplace 3.0: Transforming work environments to support innovation and meaningful work
The race to gender equity for Asia’s startups
How Many Apps Does It Take to Change a Workplace?
In an era of zero-sum thinking, business leaders must unlock a mutually beneficial future