Real estate investor and manager, Cromwell Property Group (Cromwell), on behalf of Cromwell European REIT (CEREIT), has completed the acquisition of a 105,098 sq ft (9,764 sqm) logistics asset for £10.0 million (€11.7 million). With an attractive 5.6% net operating income, this will be CEREIT’s first UK asset in its diversified portfolio and accelerate its pivot to logistics.
This fully-let freehold asset is located in a prime logistics location close to Liverpool and Manchester, providing good connectivity to major motorway networks, two airports and a deep-sea port. The recently refurbished building sits on a five acre site and benefits from a large yard and dual-access loading.
The asset is occupied by Panther Warehousing Ltd, the UK’s leading two-man B2C premium home delivery specialist, with a long-weighted average lease expiry profile of 10 years till May 2031.
Matthew Bird, Head of UK at Cromwell Property Group, said: “We are delighted to have secured such a highly attractive asset on behalf of CEREIT for its first UK acquisition. The UK market remains a strong market for investors, particularly in the logistics and light industrial sector, with investor demand largely driven by a buoyant occupational market tied to the accelerated consumer shift to online retail.
We look forward to continuing to increase CEREIT’s strong portfolio with well-located assets occupied by excellent tenants.” he added.
CEO of the Manager of CEREIT, Simon Garing said: “I am delighted to announce CEREIT’s first acquisition in the UK. We’ve been studying the UK market for some time and actively looking for accretive opportunities for CEREIT to make our entry, and look forward to expanding our footprint in the region.
Cromwell Property Group’s experienced local, on-the-ground team has once again proven their local asset management capabilities and was instrumental in securing this deal amidst the highly-competitive property market in the UK.”