Cromwell European REIT has announced that it is to acquire six office properties in France and Poland. CEREIT is to pay €246.9 million for all six properties.
“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,” CEO Simon Garing commented.
The Poland properties comprise two predominantly office properties in Kraków and an office property in Poznań. One of the Kraków Properties is located close to the city centre and the other is in Special Economic Zone: Krakówski Park Technology, with both having close access to key roads. They have an aggregate LFA spanning 34,295 sqm and a 100% occupancy rate as at 1 March 2019, as well as a 6.1-year WALE as at 31 March 2019; and their key tenants include BGŻ BNP Paribas, Motorola Solutions Systems, and UBS Kraków. The Poznań property is located within a large academic cluster with over 110,000 students as well as 24 universities and is centrally positioned between the airport and city centre, close to a large shopping centre. It has an aggregate LFA spanning 42,267 sqm and a 100% occupancy rate as at 23 May 2019, as well as a 3.4-year WALE as at 31 March 2019; and its key tenants include CapGemini, GSK, MAN Group, and Santander Group.
Vastint Poland has confirmed that one of the properties being transacted is the first stage of Business Garden Poznań, although no final sales contract has been signed yet.
