01/06/2023

Real estate investor and fund manager Cromwell Property Group (Cromwell) is pleased to announce that it has started the strip-out works phase at Maxima, a proposed state-of-the-art office and retail asset in Rome with the highest ESG credentials, on behalf of Cromwell European REIT (CEREIT).

The final design phases will be concluded during the third quarter of 2023 with the obtaining of the last building permits. The strip out works are carried out by HTR Bonifiche, a local company specialized in environmental remediation and demolitions. During the strip out process at least 80% of the materials removed will be recycled and various materials re-used, demonstrating Cromwell’s commitment to a sustainable and environmentally friendly approach throughout the supply chain.

The proposed refurbishment is designed by Italian architect IT’S and includes a complete renovation of the six-storey building and the creation of contemporary, flexible office and retail spaces.  The asset will target certifications LEED Platinum and WELL Gold, with a key focus on sustainability and the occupiers’ well-being. The office spaces range from the above ground floors to the first basement whilst the retail spaces are located on the extensive ground floor. The building is also envisioned to offer external green-leisure spaces, bicycle facilities, 80+ parking spaces, EV charging stations, an auditorium area and an event space.

Maxima is strategically located on Via dell’Amba Aradam in the San Giovanni district, in the heart of the historical centre of Rome and in close proximity to the SS7 Via Appia motorway, as well as the Termini train station and several metro stations.

Lorenzo Caroleo, Head of Italy for Cromwell, commented: “The proposed redevelopment of Maxima demonstrates our long-term approach and strong commitment to the Italian market, which continues to experience strong occupier demand for high-quality, sustainable office space in well-located areas.”

“Having recently secured an anchor tenant for another Cromwell development, Nervesa21 in Milan, we are pleased to progress on our plans to redevelop also our Rome office asset into a grade A, LEED Platinum and WELL Gold certified property for which we expect a high demand from occupiers who desire to be located in the city center of Rome.”

Alessandro Cambi, Founder & Partner of IT’S, commented: “Being built on top of the remains of the II century A.D. Domus Faustae residence, Maxima incorporates all the historical layers of the city into one building, aiming to achieve the highest ESG standards to provide maximum comfort to the occupiers. The project contributes to the unique nature of Rome – a city always capable of re-inventing itself.”

CBRE and DILS have been appointed as commercial advisors to pre-market the proposed development.

10/05/2023

Real estate investor and fund manager Cromwell Property Group (Cromwell) has announced the appointment of Cecile Babcock as Head of Business Development, Europe.

Cecile has more than 12 years of experience in real estate investment and debt capital markets in the UK, North America and continental Europe.  Prior to joining Cromwell, she co-headed business development at London-based investment firm Long Harbour. In this role, she was responsible for fundraising for the long income and multi-family programmes and creating the geographic approach to expansion into new regions.

Cecile has also held roles as head of product development and investor relations for multiple asset-backed debt originators in San Francisco and Silicon Valley.

She holds an MA in international relations and modern history from the University of St Andrews and an MBA from the University of Cambridge, during which she specialised in cross-border business.

Cecile will commence her role on the 1st June and will be based in London, reporting to Pertti Vanhanen, managing director, Europe.

Pertti Vanhanen, managing director, Europe, commented: “We welcome Cecile to the team and are excited to have somebody with her extensive knowledge and experience in this role. This is an important position for us and very much part of our broader strategy to increase assets under management across Europe as we continue our transition to becoming a capital light investment and fund manager.”

26/04/2023

Real estate investor and fund manager Cromwell Property Group (Cromwell) is pleased to announce that it has secured – on behalf of Cromwell European REIT (CEREIT) – two occupiers for the CEREIT’s light industrial and logistics asset located west of Milan, Vittuone, one of the major logistics areas in the north of Italy. The two new leases account for approx. 80% of the total 60,000 sqm lettable area available in the asset.

ABB, a global technology leader in electrification and automation, has signed a new lease for 36,000 sqm. ABB has been occupying the building since 2002 and with the new lease has confirmed the mission-critical nature of this asset.

A second new lease for 12,000 sqm has been signed by a leading global automaker and mobility provider. The space is currently under refurbishment and lease will commence in the second half of 2023 after completion of works.

The remaining vacant portion of the building (12,000 sqm) is currently marketed for lease to potential tenants, while being refurbished to meet current logistics market needs; the project includes the creation of loading docks, sectional doors for vans, new sprinkler system, new HVAC systems, new BMS and floors with bearing capacity of 5 tonnes / sqm.

As part of the Group’s ESG strategy, Cromwell carefully considers carbon emissions and energy efficiency in every refurbishment strategy: the asset will be equipped with photovoltaic panels, LED lighting, electric vehicles parking spaces and a range of other measures to modernize the building and meeting ESG expectations of both institutional landlords and international occupiers. On completion, the refurbished portions will comply to LEED Gold standards.

The asset’s location benefits from excellent motorway links, being strategically located close to the A4 exit of Arluno and the A8, A7 and A1 motorways and simultaneously well connected with the Milan ring-road.

Lorenzo Caroleo, Head of Italy for Cromwell, commented: “The quick lease-up of this asset validates our strategy and highlights our ability to modernise our buildings and create value for both our capital partners and our tenant customers.

Our local asset management team has executed the business plan few months after acquisition, thanks to their capability to find an agreement with the current occupier, free-up valuable space and transform this asset through a major refurbishment. The new project will provide sustainable and technologically advanced spaces which are in so much demand in northern Italy.”

18/04/2023

Real estate investor and fund manager, Cromwell Property Group, announces the promotion of Susan White to the role of Chief Financial Officer, Europe.

Prior to this appointment, Susan had led Cromwell’s Fund Finance team for four years, with responsibility for delivering significant change and improvement across the European fund management business. Her previous experience includes senior finance roles at a number of large financial institutions including the Qatar Sovereign Wealth Fund, Citigroup Property Investors and Marriott International.

As well as reporting into Pertti Vanhanen, Managing Director Europe, she will also work closely with Cromwell’s Group CFO, Michael Wilde.

Commenting on the appointment, Pertti Vanhanen, Cromwell’s European Managing Director, said: “We are delighted to be able to promote someone with such extensive senior finance experience to a key role from within the business. The Management team and I look forward to continuing to work with her as we progress our transition to become a capital light investment and fund manager in Europe.”

Susan White, CFO Europe at Cromwell Property Group, commented: “This is a great opportunity for me to leverage my experience of leading the fund finance function at Cromwell as we move into the next phase of our growth and development in Europe. Given the ongoing structural changes in the real estate industry and the rapidly evolving economic backdrop of the past few months, this is an extremely exciting time to take on such a role.”

29/03/2023

Real estate investor and fund manager Cromwell Property Group (Cromwell) is pleased to announce that it has secured – on behalf of Cromwell European REIT (CEREIT) – an anchor tenant at its 10,000 sqm sustainable office redevelopment, Nervesa21, in Milan with the support of CBRE Italy’s Advisory team.

The tenant, a major European multinational corporation operating in the communications industry, will relocate to the vibrant neighbourhood of Scalo Porta Romana and will occupy 4,500 sqm of office space at Nervesa21, following the completion of the refurbishment of the asset by the end of 2023.

Nervesa21 has been re-designed to offer 14 modern floors, modular flexible layout, premium amenities, 2 rooftop terraces and 4 panoramic elevators. The building has been designed by architect DEGW / Lombardini 22 and is currently under construction and set to be one of the most advanced Grade-A offices in terms of sustainability and energy efficiency.

Constructed with a strong focus on sustainability, the complex will benefit from 5,300 sqm of external green leisure space, end of trip bicycle facilities, 230 parking spaces and will be powered by a combination of onsite renewable energy from solar panels and 100% renewable energy tariffs. Upon completion, the redevelopment is expected to attain LEED Platinum and WELL Gold certifications.

Nervesa21 is strategically located in the Porta Romana district of Milan, south-east of Milan city centre. The asset is in close proximity to Corso Lodi and has direct access to the A1 highway, the Linate Airport and the Central Station.

Lorenzo Caroleo, Head of Italy for Cromwell, commented: “Securing such a strong anchor tenant at Nervesa21, a year before the completion of its redevelopment, demonstrates robust occupier demand for high-quality and sustainable office premises in strategic locations.

“The Milan office market continues to be the most sought-after in Italy and one of the most active in Europe, attracting interest from both national and international occupiers.”

Fabio Mantegazza, Head of Advisory & Transaction of CBRE Italy, commented: “The success of this operation demonstrates how occupiers continue to seek quality spaces to support new ways of working and retain talent. The tenant strongly embraces the ESG principles foreseen within Nervesa21 and the architectural design that significantly enhances the outdoor spaces in favor of the well-being of the people who will work there”.

15/12/2022

Real estate investor and fund manager Cromwell Property Group (Cromwell) will co-invest with Bain Capital Special Situations, a leading global special situations investor with experience supporting differentiated real estate platforms, to develop a 55,000 sqm modern grade A logistics warehouse in Bari, Southern Italy.

This is the first in a series of planned developments by the two firms who aim to take advantage of the increasing shortage of supply of logistics assets in the Italian market, which is expected to deteriorate further in the medium term, as many institutions adopt a wait-and-see approach to development as a result of economic uncertainty.

Designed to meet all modern grade A logistics standards and with the flexibility to accommodate up to four occupiers, the asset will be developed on a 120,000 sqm plot of land in Modugno, the industrial and logistics agglomerate located on the outskirts of Bari, an Adriatic port in the Apulia region. The area is an established logistics hub that is home to many well-known logistics operators, including Amazon, MITSafetrans, STEF, Nippon Express, as well as industrial giants Bridgestone, Bosch, Magna Powertrain, Magneti Marelli and GE Oil&Gas.

The site is also close to Bari city centre, which is a 20 minute drive away and the Bari North toll gate of the A14 highway only 5 minutes away. The catchment area is home to 1.5 million people within a 20 minute drive, increasing to 1.8 million within a 60 minute drive.

Cromwell has received preliminary interest to lease more than three times the expected gross lettable area and expects to have most of the asset let by the start of the construction in the first quarter of 2023.

All future assets in the strategy will be developed to grade A logistics standards incorporating modern technical specifications and will target the LEED Gold certification. Alternative construction techniques and materials will be considered in order to lessen the environmental impact of construction and enable high ongoing energy efficiency, saving occupiers money.

Lorenzo Caroleo, Cromwell’s Head of Italy said: “Given the lack of available logistics and warehouse space in and around Italy’s main cities, we anticipate these modern warehouses will attract large and established Italian and European companies that are active in online and more traditional retail channels.”

“We also believe they will feed into the growing demand for logistics assets created by a trend of onshoring and shortening of supply chains as a result of the disruption caused by the pandemic and increased costs due to surging inflation. We aim to meet this demand by continuing to deploy capital to acquire land to develop more facilities as we build on our current pipeline.”

Fabio Longo, a Managing Director at Bain Capital Special Situations added: “We like to invest in hard-to-access real estate sectors, underpinned by enduring secular trends that drive long-term demand. By partnering with Cromwell, with its experienced on-the-ground Italian team and in-house development capabilities, we have identified a deep dislocation between the supply of modern logistics facilities and the demand from occupiers across the region. We look forward to working with them on this mandate.”

12/12/2022

Real estate investor and fund manager, Cromwell Property Group (Cromwell), has announced the appointment of one of the United Kingdom’s leading sustainability experts, Lara Young, as its Head of Environmental, Social, and Governance (ESG).

Lara was most recently named Young Person of the Year by the Construction Leadership Council (CLC) and Energy and Carbon Leader of the Year at the 2021 edie Awards – the United Kingdom’s industry leading sustainability awards – and she is currently the Chair of the Carbon Champion Review Panel, which is convened by the Institution of Civil Engineers (ICE).

Cromwell’s Managing Director for Europe, Pertti Vanhanen, said: “We’re delighted to have secured someone of Lara’s calibre for this role, and we’re excited to be able to draw on her extensive knowledge and invaluable experience.”

“We look forward to working with Lara on further developing the Group’s existing ESG framework and aligning the ESG strategy with the business’s overall strategic objectives. Taking these steps is a natural progression to reduce risk, improve business resilience, and continue to develop a culture of innovation and thought leadership within our teams across the globe.”

“Our current ESG strategy is driven by industry best practice, and we are striving to achieve a globally recognised sustainability and corporate social responsibility platform in the next few years.”

“We welcome Lara to the team and look forward to her contribution towards reaching our goals.”

As the Climate Change Director at Costain, Lara was the driving force behind establishing and implementing their Climate Change Action Plan, which set out a detailed 15-year plan to transition to a net-zero organisation by 2035.

It is those kinds of strategic outcomes that Lara is seeking to help replicate at Cromwell.

“I’ve always been someone who’s strived to make a difference in the world, and I’ve constantly advocated for taking action today on factors influencing climate change,” said Lara.

“I’m delighted to join Cromwell Property Group – a company I know has already set itself ambitious ESG targets ­­– and I’m proud to be able to help steer and bring to life Cromwell’s ESG strategy in a way that will positively impact the business, its tenants and investors, and the planet.”

18/10/2022

Real estate investor and fund manager Cromwell Property Group (Cromwell) has completed, on behalf of Cromwell European REIT (CEREIT), the acquisition of a multi-let light industrial logistics property in Brøndby, Copenhagen for €15.7 million.

Sognevej is a freehold light industrial complex of five buildings on a 41,649 sqm site with a total lettable area of 22,224 sqm, comprising predominantly warehouse and some office space. Located in Priorparken, an established business park in Copenhagen, the asset complements CEREIT’s existing portfolio in the region as it’s adjacent to the Priorparken 700 and 800 assets.

With a weighted average lease expiry of 1.1 years, Sognevej provides significant asset management potential and the opportunity to improve value by regearing current leases and letting vacant space.

Commenting on the acquisition, Pontus Flemme Gärdsell, Head of Nordics, said: “Acquired in an off-market deal significantly below the cost of replacement, Sognevej is a well-located asset set to benefit from Copenhagen’s growing position as a major European logistics hub in a market where vacancy rates at 1.2% are at their lowest level since 2018.

“In addition, we predict the attractiveness of the location will further improve upon completion of the 18 km Fehmam belt tunnel in 2029, which is expected to reinforce Denmark’s status as a central hub connecting Germany with Sweden and the broader Nordic region.

“The park’s location also provides strong cost and leasing synergies with CEREIT’s adjacent assets, Priorparken 700 and 800.”

The Nordics represents one of Europe’s most established markets for logistics assets and is supported by strong operating fundamentals, particularly in Denmark where the economy is powered by a diverse range of industries from the cleantech, life sciences, food and maritime sectors.

14/06/2022

Real estate investor and fund manager, Cromwell Property Group (Cromwell) announces the appointment of Andrew Creighton as Head of Investment Management Europe.

Based in London, Andrew will join the European Management Team and report directly to Cromwell’s Managing Director in Europe, Pertti Vanhanen. In this role, he will be responsible for all aspects of Cromwell’s investment, fund and asset execution and management activity across Europe.

Andrew joins Cromwell following ten years at abrdn where he held several senior leadership roles, latterly as Head of Investment Management Real Estate with responsibility for managing over €45 billion of AUM and the asset management, development management and transactions teams. Prior to this he held the role of Director of Property at Henderson Global Investors (Nuveen) and also previously worked at DTZ (Cushman & Wakefield).

Commenting on the appointment, Pertti Vanhanen, Cromwell’s Managing Director Europe, said: “Andrew is a highly experienced real estate professional who brings more than 25 years’ of real estate investment management experience to our European platform. His deep expertise across all major investments sectors combined with his demonstrable experience in creating balanced pan-European products across all risk profiles will make a real impact on our business as we accelerate our transition to becoming a stronger European investment manager.”

Andrew Creighton, Cromwell’s Head of Investment Management in Europe, said: “This is a great opportunity to contribute to a strong growing business and a great team with progressive plans to create a diverse range of investment strategies to align with the future needs of investors. Against an increasingly uncertain macroeconomic backdrop, investors are looking for partners who are able to align with their long-term ESG and investment return goals. This is an exciting time to be joining Cromwell and I look forward to helping them achieve their innovative goals and deliver returns for investors.”

Andrew graduated from Cambridge University in 1990, completed a second degree in Estate Management at Southbank University and qualified as a Chartered Surveyor in 1993.

05/05/2022

Real estate investor and fund manager, Cromwell Property Group (Cromwell) has recently completed, on behalf of Cromwell European REIT (CEREIT), the acquisition of six fully-let light industrial and logistics assets totalling €126.1 million and 192,112 sqm of gross lettable area across Germany, Italy, the Netherlands and the UK.

ABB, Vittuone, Milan, Italy

Last refurbished in 2021, ABB is a 63,221 sqm freehold, light industrial / logistics asset located 25 kilometres west of Milan’s city centre. The asset is situated on a 99,760 sqm site with future redevelopment potential for urban logistics use.

ABB is close to the A4 Turin-Trieste motorway, which runs through Milan and Venice, and within a 2.5 km radius of Vittuone’s northern urban area and Arluno’s southern urban area. It is fully let to ABB, a Fortune 500 company, on a ‘full repair’ lease with a no break option contract.

Bialetti Headquarters, Coccaglio, Brescia, Italy

Comprising two buildings with 44,644 sqm total lettable area on a 74,533 sqm site, this freehold light industrial / logistics asset sits approximately 72 kilometres east of Milan and within the Lombardy region, one of Italy’s wealthiest and most industrialised regions.

The asset’s quality standard is comparable to a modern grade A warehouse, with 12 loading doors and a large car park with approximately 360 public and private parking spaces. The asset is occupied by Bialetti Industrie SpA, a leading Italian coffee and houseware products group that is widely known as the inventor of the ‘Moka Espresso’ coffeemaker, on a long-term 12 year lease.

Saalepark Jena, Löbstedter Str. 101 – 109, Germany

Saalepark Jena is a 18,887 sqm freehold, light industrial business park consisting of two buildings on a 23,328 sqm site. It is situated within an established commercial area and is well served by the B88 federal highway, which connects to the B7 federal road, the A4 motorway and the A9 north-south motorway.

The well-maintained asset was constructed between 1993 and 1994 with partial refurbishments conducted progressively from 2014 to 2020. It is currently fully let to 13 tenant-customers, most of whom are well-established names who operate in the life sciences, medical and industrial equipment industries, as well as the precision engineering and biotechnology space.

Thorn, Spennymoor, Durham, UK

Thornis a freehold light industrial / logistics asset, located in the north-east of England, within a well-developed industrial area and nearby other mega logistics and fulfilment centres. It is served by the A1, the main motorway linking the north and south of the UK.

The 41,611 sqm asset is situated on a 135,820 sqm site, with good opportunities for future redevelopment due to the low site coverage. It is fully-let on a long term basis to Thorn Lighting, one of the leading global suppliers of integral lighting solutions.

‘s-Heerenberg, The Netherlands

s-Heerenberg is a 15,111 sqm freehold logistics asset, strategically located at the Dutch-German border, beside the Netherlands’ A12 highway, one of the main logistics corridors into Germany.

The fully-let asset is situated on 21,913 sqm of freehold land with substantial renovations were undertaken in 2019. It is fully-leased to Kleertjies.com B.V., one of the largest e-commerce operators in the Netherlands.

Tilburg, The Netherlands

Tilburg is a freehold logistics asset, situated at the Katsbogten industrial park within the prime logistics region of Tilburg-Waalwijk. It is strategically located at the entrance of the A58 highway providing strong accessibility to the Rotterdam / Antwerp and Eindhoven economic zones.

The asset, fully-let to a well-established shoe and fashion manufacturer, was built in two phases in 2012 and 2019 and consists of 8,638 sqm of primary warehouse and supporting office space, situated on 14,139 sqm of freehold land.

Robert Cotterell, Head of Investments, Europe and Head of UK at Cromwell Property Group, said: “To have recently completed the acquisitions of these six highly attractive light industrial / logistics properties on behalf of CEREIT in such a short timeframe, highlights the reach, efficiency and expertise of Cromwell’s pan-European platform and local on-the ground teams.

We continue to see considerable upside in the European light industrial / logistics sector, especially in assets like these with redevelopment and repositioning potential. Our platform looks forward to continuing to source these types of attractive and well-located assets with high-quality tenants for our investors across the European region.”