Cromwell Property Group and Bain Capital Special Situations to develop a LEED Gold logistics warehouse in Bari, Southern Italy
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.”
Cromwell hires award-winning expert Lara Young as Head of ESG
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.”
Cromwell acquires 41,649 sqm logistics property in Copenhagen
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.
Cromwell appoints Andrew Creighton as Head of Investment Management in Europe
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.
Cromwell completes the acquistion of six-light industrial logistics assets across europe on behalf of Cromwell European REIT totalling 126.1 million
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.”
Cromwell signs technology business at the iconic FIVE55 building in Rotterdam
06/04/2022
Real estate investor and fund manager Cromwell Property Group (Cromwell) has completed a lease on 1,307 sq m of office space with the air transport and communications and information technology business, SITA B.V, at the FIVE55 office building in Rotterdam, the Netherlands.
Real estate investor and fund manager Cromwell Property Group (Cromwell) has completed a lease on 1,307 sq m of office space with the air transport and communications and information technology business, SITA B.V, at the FIVE55 office building in Rotterdam, the Netherlands. With the move of SITA B.V., we welcome a new company in the city centre of Rotterdam.
FIVE55 is a striking 27-storey office building located in the centre of Rotterdam with commanding views across the city and major landmarks including the Rotterdam building and Markthal.
Cromwell transformed the building in a major refurbishment in 2021, creating a spectacular and vibrant main entrance area with high-quality office space and shared services and amenities throughout.
As well as benefitting from the building’s strong sustainable credentials including a BREEAM Good rating, EPC label A and Well Gold certification, occupiers can take advantage of the central location and access to leisure and retail outlets, including well-known brands such as de Bijenkorf, Apple store, H&M, Zara and Mango.
In addition to SITA B.V., existing occupiers include Mediterranean Shipping Company, Unifeeder, Breadbox Shipping Lines, and Karo Pharma.
Tom Coenen, Senior Asset Manager at Cromwell Property Group commented: “It’s great to be able to welcome SITA B.V. to the spectacular Five55 building. This latest letting highlights the growing demand for modern and sustainable office space as we recover from the pandemic. Following our refurbishment of the building, Five55 now incorporates exactly the type of modern space that employees are looking for.”
Cromwell was advised by CBRE together with the Mik Bedrijfshuisvesting. SITA B.V was advised by Cushman and Wakefield.
Cromwell completes two Dutch logistics acquisitions on behalf of CEREIT
05/01/2022
Real estate investor and fund manager, Cromwell Property Group (Cromwell), on behalf of Cromwell European REIT (CEREIT), recently completed the acquisition of two logistics assets in ‘s-Heerenberg and Tilburg, the Netherlands.
The first acquisition in ‘s-Heerenberg is a 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 consists of approximately 15,000 sqm of primary warehouse and supporting office space, situated on 22,000 sqm of freehold land. The asset was originally built in 1993 and extended in 1999. Substantial renovations were undertaken in 2019, including the installation of heating and cooling functions, sustainable LED lighting, electric systems, a full office fit-out and automation.
The property is fully-leased to Kleertjes.com B.V., a leading online children’s apparel retailer recently acquired by Wehkamp, one of the largest e-commerce operators in the Netherlands.
The second acquisition 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 fully-let asset, built in two phases in 2012 and 2019, consists of approximately 8,600 sqm of primary warehouse and supporting office space, situated on approximately 14,000 sqm of freehold land. The property holds an A++++ energy label and was recently upgraded further with the installation of approximately 1,700 solar roof panels.
The property is fully occupied on a long-term basis by a well-established shoe and fashion manufacturer.
Gijs Vissers, Head of Investment Management, Benelux at Cromwell Property Group, said: “We are delighted to have secured these highly attractive assets on behalf of CEREIT, in addition to the 12 office and logistics / light industrial assets we currently manage across the Benelux region. The Netherlands logistics market remains as one of the most active and established markets in Europe driven by its role as the redistribution gateway from the Rotterdam and Amsterdam seaports.”
CEO of the Manager of CEREIT, Simon Garing said: “I am pleased to announce CEREIT’s first additions to its Dutch light industrial / logistics portfolio post-IPO as a result of the on-the-ground team’s excellent work in sourcing these opportunities. CEREIT continues to add scale to its logistics portfolio in the Netherlands, which is a core market for Western Europe supply chains, given its strategic connectivity between its large ports and distribution network.”
Cromwell was supported across both transactions by legal advisor, Loyens & Loeff, financial / tax advisor, PwC and technical advisor, SGS. BNP Paribas Real Estate acted as the commercial advisor for the s’Heerenberg acquisition and 1530 Real Estate acted as the commercial advisor for the second acquisition in Tilburg.
The seller of the Tilburg asset was supported by commercial advisor, Raimond Weenink Bedrijfsmakelaardij and legal advisor, Boels Zanders Advocaten.
Cromwell Polish Retail Fund steps up 2021 GRESB score
06/12/2021
Real estate investor and fund manager, Cromwell Property Group (Cromwell) has announced the Cromwell Polish Retail Fund (CPRF) received a GRESB score of 85 for 2021, an increase of 42 points since first reporting in 2014.
CPRF contains seven catchment-dominating shopping centres strategically located across Poland. Three of the shopping centres have undergone significant redevelopment and refurbishment including the award-winning Janki Shopping Centre’s €65 million expansion which added 21,000 sqm of net lettable area, allowing a more diversified tenant mix between retail and leisure.
Cromwell’s Head of ESG, Claire George, commented, “Year-on-year, Cromwell continues to actively seek out new and innovative ways in which we can reduce the environmental impact of our activity and funds to meet investor needs. The improvement in our GRESB score over the past seven years is just the latest example of how we are making continuous improvements across our assets to align with evolving investor demands and is an excellent achievement for the team in Poland.”
Magdalena Piechna, Fund Manager, CPRF added, “Over a number of years, the team has made great strides in improving the CPRF GRESB score, with this year’s score of 85 almost doubling its original 2014 result. This achievement is testament to the efforts of the whole team in Central and Eastern Europe and illustrative of the group’s commitment to improving sustainability across the assets we manage.”
In CEE, Cromwell has over 45 real estate professionals and, as at 30 June 2021, managed €1.1 billion of office, retail and logistics and light industrial assets let to over 570 tenant-customers, covering over 787,000 sqm in Poland, Czech Republic and Slovakia.
About GRESB
Launched in 2009, GRESB is an investor-driven global ESG benchmark and reporting framework for listed property companies, private property funds, developers and investors that invest directly in real estate.
Participation in the benchmark grew by 24% this year, to 1,520. This is the highest percentage increase the assessment has seen since 2012 and the highest ever increase in total numbers. The benchmark now covers $5.7 trillion of AUM (up from $4.8 trillion) and nearly 117,000 individual assets.
Growth has been driven mainly by Europe, which saw massive growth for the second year in a row and now accounts for nearly half of the entire benchmark. High continued growth in Europe is likely driven by both investor interest in ESG data and the industry’s focus on and attention to emerging regulations. The group of listed entities grew by 20% while the non-listed group grew by 25%. GRESB measures and ranks public disclosure practices of participating listed entities on an annual basis. Categories assessed include sustainability governance, sustainability implementation, operational performance and stakeholder engagement practices.
Cromwell appoints Afraz Ahmed as Head of Treasury for Europe
11/10/2021
Real estate investor and fund manager, Cromwell Property Group (Cromwell), has appointed Afraz Ahmed as Head of Treasury for Europe.
Afraz will be responsible for Cromwell’s banking and lending relationships in Europe, including raising new debt and managing existing facilities on behalf of its European funds and mandates. He will also provide advisory and execution services on hedging and credit risk issues.
With substantial treasury experience in the funds management sector, Afraz joins Cromwell from Varde Partners, where he set up and ran the treasury function for Europe and Asia.
Cromwell’s Head of Treasury Brett Hinton said: “I would like to welcome Afraz to Cromwell and look forward to working with him closely. His experience in working with global institutional investors will be invaluable as he takes on his new role, supporting the entirety of our European operations and portfolio.”
Afraz added: “I am delighted to be joining Cromwell and look forward to supporting the funds management and capital teams in delivering great outcomes for our investors and capital partners.”
Afraz holds an MBA from Cranfield School of Management and a BSc (Hons) in Economics and Business Finance from Brunel University.
Cromwell appoints Florian Hoyndorf as Head of Development, Europe
13/09/2021
Real estate investor and fund manager, Cromwell Property Group (Cromwell) has appointed Florian Hoyndorf as Head of Development for Europe. Florian joins the European real estate management team and will oversee all development and project management activity in Europe.
With more than 20 years of real estate development experience, Florian joins from LOGISTA Group where he spent three years as head of real estate and construction, responsible for all aspects of its real estate portfolio. Prior to this, he was a real estate transaction and asset manager at Amazon and Aldi, where he was involved in the acquisition and construction of large-scale warehouses, last mile facilities and retail outlets.
Responsibilities in this newly created role will include identifying, assessing and delivering the development projects within Cromwell’s existing managed portfolio. Additionally, Florian will be focused on further building the pipeline through the development growth strategy within the business and with our investment partners across the group.
Cromwell’s development pipeline in Europe currently consists of 24 projects across nine different countries, all at various stages of assessment, planning and construction.
Chris Hansen, Cromwell’s Group Head of Development, commented: “As yields continue to tighten across some of the better performing real estate sectors, value-add and development strategies provide some investors with the higher returning investment they require.”
“We have already identified a number of exciting opportunities across our platform that we believe will add value and look forward to having Florian and the development team successfully delivering these and the returns to our investors.”
Florian Hoyndorf, Head of Development, Europe added: “I am delighted to be joining Cromwell which has a long track record of value-add activities across the group. I’m excited to work closely with Chris and the European team to crystallise these opportunities as well as identifying new possibilities.”
Florian holds a masters degree in Architecture and Urbanism from the Universitat Politécnica de Cataluña Barcelona and a graduate degree in Architecture from the University of Applied Sciences Hamburg.