ARETE Group and Cromwell European REIT signed a purchase agreement under which Arete Invest CCII sells its overall portfolio for €113.2 million at net operating income yield of 6.7 percent. The transaction is expected to close in Q1 2021. The portfolio comprises 11 logistics and light industrial properties in the Czech Republic and Slovakia that are nearly 100 percent leased to 17 mainly international tenants. Its overall leasable area of 125,000 sqm, with an additional 140,000 sqm for further development and future growth. The deal represents almost 25% of the overall industrial investment transactions volume concluded in the Czech Republic in 2020 to date.
“This step represents a significant milestone in our fund strategy and proves that our defined target in 2016, to build and compile a portfolio of quality logistics and light industrial assets throughout a 5 year investment cycle, is now delivered on,” commented Robert Ides, co-founder of ARETE group. “It also clearly demonstrates that through consistent approach, the portfolio meets high quality standards demanded by institutional investors such as Cromwell European REIT.”
Karol Pilniewicz, Head of Central Eastern Europe (CEE) for Cromwell Property Group, said his company would continue to look for acquisitions for a variety of capital partners in Poland, Czech Republic and Slovakia.
