Cromwell European Real Estate Investment Trust regains control over Paris site

The firm is set to receive $1.4m compensation for the loss of potential rental income from the French government.

Cromwell European Real Estate Investment Trust (CEREIT) has regained full control over its 10-ha freehold site Parc des Docks Saint-Ouen asset in Paris, France, an announcement revealed.

The French government has agreed to compensate CEREIT with an amount of $1.4m (EUR907,128) for the loss of potential rental income borne by CEREIT since listing, after the authorities’ decision to not expropriate the site.

The asset has a net lettable area of 73,371 sqm of warehouse and ancillary office space. It was independently valued at $176.17m (EUR114.1m) as at 31 December 2018, which was 16.4% higher than the $151.31m (EUR98m) CEREIT paid for it in 2017. The asset, which is also said to be CEREIT’s third-largest asset by value, is located in Saint-Ouen sur Seine, a municipality that is set to benefit from rejuvenation and urban renewal works, in part, stimulated by the $54.04b (EUR35b) “Grand Paris Express” urban infrastructure project.

French authorities had reportedly been mulling whether to take possession of the site to develop a hospital, university and school, given its long-term urban renewal potential.

According to Simon Garing, Cromwell EREIT Management’s CEO and executive director, the firm has regained full control of its 10-ha site and has renewed marketing efforts to extend leases and secure new customers.

“Current and prospective businesses have expressed strong interest in leasing space at the asset, given its last-mile location attracting logistics and e-commerce-related businesses. We anticipate that its occupancy rate, which currently stands at 83%, will increase substantially over the rest of 2019,” he highlighted.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia