Cromwell European REIT acquires Italy warehouse for $30.6m

This is the company’s third logistics asset in the country.

Cromwell European REIT (CEREIT) recently acquired a new logistics asset in the Greater Venice area of Italy for €19.6 m (approximately S$30.6 m).

“This is a valuable off-market opportunity for CEREIT to acquire a fully-leased freehold logistics asset in the strategic Greater Venice market in Northern Italy, at an accretive 6.5% NOI yield,” said Cromwell EREIT Management CEO Simon Garing in a press statement.

He added that the logistics centre is conveniently located near the manufacturing plant and research and development centre of British FMCG multinational Reckitt Benckiser Group.

“We also have under review an advanced pipeline of opportunities in Western Europe, including Germany, the Netherlands, Italy and the UK, which if materialised, is set to bring CEREIT closer to the stated target of a 50% portfolio weighting to this sector, up from the current 40%,” said Garing.

The property has a site area of 47,787 square metres, and consists of a warehouse and a small office component spanning 27,938 sqm in gross floor area.

The warehouse floor has an exceptional load bearing of 15 tonnes per sqm, with a high storage area under-beam height of 11.65 metres.

It is located in the Veneto region, at Mira, Greater Venice, less than an hour’s drive away from Venice and Padua, and 18 kilometres away from the Marchera harbour.

The Veneto region is amongst the top three logistics markets in Italy.