Cromwell European REIT (CREIT)'s manager has announced to sell 12 properties in Netherlands, France and Denmark for a total $65.7m Euro to a private equity fund advised by Blackstone. The transaction is expected to complete by Feb 2020.
3 things that you need to know
1. In terms of valuation, the sale price was transacted at a 15.2% premium to its original purchase price and 4.1% premium to its latest market value. After taking into consideration the cost of $700 thousand Euro, the disposal should give an excess of at least $5m capital gains.
2. The disposal has minimal impact on net asset value per share and distribution per unit. With the sale proceeds, it provides capital for the REIT to make more yield and NAV accretive acquisitions.
3. Post-disposal, the REIT portfolio occupancy improved by 0.7% to 92.7%.
This deal is inligned with the REIT's strategy to recycle capital from old and ageing assets in the portfolio to acquiring quality assets which are yield accretive. The REIT is currently trading at a 7.8% yield.
Did you know our REIT portfolio has generated a total returns of 25% year-till-date November?