Cromwell E-Reit reports portfolio valuation growth over 2020

Michelle Zhu
Published Thu, Feb 18, 2021 · 09:47 AM

FOLLOWING the completion of independent valuations by CBRE and Savills, Cromwell European Reit (Cromwell E-Reit) reported that 95 properties in its portfolio have been valued at an aggregate of 2.13 billion euros (S$3.41 billion) as at Dec 31, 2020.

This represents an overall 2.2 per cent fair-value increase from the Reit portfolio's previous valuation as at June 30, 2020, its manager announced on Thursday. The latest aggregate valuation also represents an overall fair-value increment of 45.4 million euros. The total valuation increment for the full year ended Dec 31, 2020 was 20.5 million euros.

Based on the latest valuations, the portfolio is valued at an initial yield of 6.2 per cent with a reversionary yield of 6.5 per cent. This has resulted in the manager's expectation of growth on average when leases are renewed at expiry and the remaining vacancy is leased up in the future.

In its bourse filing, Cromwell E-Reit's manager noted that the portfolio's revaluation gain was driven by the logistics and light industrial sector, which continued to outperform with a fair-value gain of 57.8 million euros.

However, both the office and other sectors slightly underperformed, booking fair-value losses of 8.5 million euros and 3.9 million euros respectively.

Commenting on the Reit's latest portfolio valuation figures, the manager's chief executive Simon Garing said the overall uptick is a testament to the portfolio's diversification and resilience, as well as the capabilities of Cromwell's asset management teams.

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"Cromwell E-Reit's valuations have now grown by 169.5 million euros or 8.4 per cent over the respective purchase prices, in part also to our ability to negotiate off-market acquisitions," he added.

As at 9.33am on Thursday, units of the Reit were trading 0.5 euro cent or 1 per cent higher at 50 cents.

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