Long leases 'protect Cromwell's Italy assets from Covid-19 impact'

Vivienne Tay

Published Tue, Feb 25, 2020 · 09:50 PM

Singapore

CROMWELL European Reit CEO Simon Garing believes Covid-19's impact on its Italian properties will be limited, given long leases locked in at its logistics, industrial and office buildings, which would be less affected compared to retail and hospitality establishments.

Italy is one of the most affected European countries by the Covid-19 virus outbreak, with more than 200 confirmed cases and already seven dead.

While discussing the group's financial performance for FY19, which came in stronger than projected in its 2017 listing prospectus, Mr Garing said capitalisation rates will likely continue to "firm" in Italy, which will offset expected rental increases when the lease of its…