25/07/2023

Real estate investor and fund manager Cromwell Property Group and Bain Capital Special Situations, a leading global special situations investor with experience supporting differentiated real estate platforms, have acquired a new plot of land for development of two modern grade A logistics warehouses in the greater Florence area, adding to their growing portfolio in Italy.

Part of a series of planned developments by the two firms, this latest acquisition confirms their conviction in the Italian logistics market and their intention to continue taking advantage of the shortage in supply of logistics assets across Italy.

Designed to meet all modern grade A logistics standards, and with the flexibility to accommodate up to four occupiers, the two assets will be developed on a 155,000 square-meter plot of land in Lari, an industrial and logistics cluster strategically located along the motorway connecting Livorno commercial harbour and Florence (just 35 mins from the A1 tollgate). The area is an established logistics hub that is home to many well-known logistics operators, including Amazon, SDA Express Courier, Fercam, Ceva Logistics, STEF, Arco Spedizioni, DB Schenker, as well as international giants DSV, LIDL, DS Smith, Gucci, Fendi and Piaggio.

The site is a three-minute drive from a major junction with the Fi-Pi-Li motorway, a fast route crossing Tuscany that connects Florence, Livorno and Pisa, the main cities in the region. The catchment area is home to one million people within a 20-minute drive, increasing to two million within a 60-minute drive.

Cromwell has already received preliminary interest to lease more than three times the expected gross lettable area and expects to have most of the assets let by the start of construction in September 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. Innovative and alternative construction techniques and materials will be considered in order to lessen the environmental impact of construction and enable ongoing energy efficiency, carbon and cost savings.

Lorenzo Caroleo, Cromwell’s Head of Italy said: “This acquisition not only highlights our commitment to the logistics sector in Italy, but also demonstrates our commitment to ESG and willingness to invest across the country in locations where the assets and local submarkets align with our investment strategy. So far, we’ve acquired assets in northern, southern and now central Italy.

“With construction due to start in September, these warehouses will be ready to accept tenants in 2024 and we are already in discussions with several potential occupiers, keen to take advantage of the modern, efficient and flexible warehouse space we are providing.

“This is our second such acquisition in a few months, despite the macro uncertainty and challenging financing conditions, with more to come as we press ahead with our pipeline of opportunities and additional land plots to be developed in the near future.”

Rafael Coste Campos, 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.”

03/07/2023

Real estate investor and fund manager Cromwell Property Group (ASX:CMW) (Cromwell), has entered into a binding agreement to create a joint venture with Hong Kong-based asset manager Value Partners Group, exchanging on the sale of a 50% stake in the Cromwell Italy Urban Logistics Fund assets. The seven properties that make up the Fund are 100% leased to DHL (Parent Company Deutsche Post DHL Group) and situated in seven prime logistics submarkets in Italy.

Settlement is expected in late July 2023, with Cromwell’s Italian team set to continue to manage the portfolio. Located in northern Italy, near key cities of Milan, Turin, Bologna and Verona, the seven logistics properties have a combined gross lettable area of 46K sqm and are fully let to DHL on long-term leases with an overall portfolio WALT of 7.8 years.

Two of the seven logistics centres are very new, built to modern and technologically advanced specifications, while the other five properties are fully compliant with DHL’s high standards having been occupied by DHL since their development. The assets are used by DHL’s Supply Chain, Express and Global Forwarding divisions, providing the portfolio income diversification and protection across business cycles.

Commenting on the sale, Lorenzo Caroleo, Head of Italy at Cromwell, said: “Having owned and managed this portfolio since 2020, we have an excellent understanding of the assets, the occupier, and the demand for these types of assets across the north of Italy. The joint venture with Value Partners would allow us to grow this portfolio with selective acquisitions of urban / last mile logistics assets, leased to occupiers with strong covenants, that are located near the major urban hubs in Italy and other cities in Europe.”

Rachel Tong, Managing Director and Head of Real Estate Private Equity for Value Partners Group commented: “As a Hong Kong-based investor, it’s great to partner with Cromwell who will remain co-invested in this opportunity. This expansion and geographical diversification of our logistics portfolio will deliver exciting opportunities for growth and profitability for our investors. Italy is an important logistics hub in Europe. We are confident of stable returns.”

30/06/2023

Real estate investor and fund manager Cromwell Property Group (Cromwell) has completed the sale of the Piazza Affari 2 office building in Milan on behalf of Cromwell European REIT (CEREIT).

This transaction marks the first major step in CEREIT’s previously stated strategy to divest non-core and non-strategic assets over the next 2-3 years to recycle into CEREIT’s redevelopment and asset enhancement programme. Executing this landmark Milan CBD office divestment at an opportune time is further testament to the execution skills and strength of Cromwell’s team in Europe.

Built in the 1930s and partially refurbished in 2017, Affari is an office building located in the heart of Milan’s CBD with 7,787 sq m of net lettable area, eight floors above ground and two basement levels. It currently holds a BREEAM “Very Good” rating certificate.

Commenting on the sale, Lorenzo Caroleo, Head of Italy at Cromwell Property Group, said: “The strong buyer interest that we received for Affari 2 highlights the level of demand in Italy’s major cities for very well-located Grade A office assets.

“Buildings with good ESG credentials and high BREEAM / LEED certifications are highly sought after by corporate tenants in key cities like Milan, where Grade A vacancies are currently under 3%, representing an all-time low.

“We are confident that we will be able to take advantage of this trend through CEREIT’s first such redevelopment, the 10,000 sq m Nervesa 21 office redevelopment in Milan which is targeting LEED platinum status and is due for completion by the end of 2023.”

05/06/2023

Real estate investor and fund manager, Cromwell Property Group, has acquired three logistics assets in the Nordics for its value-add partnership with global investment firm Carlyle (NASDAQ: CG), spread across three separate transactions.

The assets, which approximately total 18,000 sq m in aggregate, are based in Brunna, Sweden, and Ringsted and Fredericia, Denmark, and are strategically located to serve key metropolitan hubs in Denmark and Sweden, with strong transport links. These acquisitions add to Cromwell and Carlyle’s growing portfolio of complementary distribution logistics assets in the Nordics.

The Nordics represents one of Europe’s most established markets for logistics assets and is supported by strong operating fundamentals, including resilient demand, limited supply, and low vacancy rates.

The Nordic value-add logistics partnership between Cromwell and Carlyle Europe Realty (CER) was established in July 2022 to invest in logistics assets across the Nordic region, with an initial focus on Denmark and Sweden.

Pontus Flemme Gärdsell, Head of Nordics at Cromwell, commented: “The three new assets for our mandate with Carlyle complement the existing portfolio of assets we acquired last year.

“The logistics market in the Nordics is characterised by robust occupier demand, particularly among e-retailers. This, combined with low vacancy rates, means that the region offers plentiful opportunities for value-add investors like Cromwell with a track record of upgrading and transforming assets.”

Anssi Halonen, Managing Director on the Carlyle Europe Realty advisory team, said: “The acquisition of these assets increases our exposure to the distribution logistics market in the Nordics, a core part of our investment strategy in Europe. We continue to remain active in identifying and acquiring additional logistics opportunities in the Nordics, and across other key European markets.”

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.”