Cromwell E-Reit divests 2 office assets in Italy for 20.9 million euros

CROMWELL European Real Estate Investment Trust (Cromwell E-Reit) announced on Friday (Dec 20) that it has entered into two agreements to sell two office properties in Italy for 20.9 million euros (S$29.5 million), at a blended 7.7 per cent premium to the latest valuations.

The first office is located in Venice, and the other is in Florence.

Simon Garing, chief executive of the Reit’s manager, said that the sale of these assets, along with its divestment in Padova, Italy, completed earlier this year, have further reduced the Reit’s exposure to the Italian government as a tenant.

This has fallen from around 20 per cent of the portfolio at its initial public offering and 3.1 per cent in September, to only 2.2 per cent at present.

The divestments also increase the Reit’s exposure to the logistics and light industrial sector to 54.5 per cent, up from 54.1 per cent as at Sep 30.

The European Central Bank cutting rates four times this year to 3 per cent has led to an improved outlook for logistics and prime offices in 2025.

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“We are now at the tail end of Cromwell E-Reit’s divestment programme of non-core assets this cycle, designed to provide a strong balance sheet and recycle capital into asset enhancement initiatives and new acquisitions,” added Garing.

Units of Cromwell E-Reit closed 0.03 euro or 1.9 per cent lower at 1.56 euros on Friday.