Europa Capital, the pan-European real estate investment manager, on behalf of its latest value-add fund, and Cromwell Property Group (Cromwell) have launched a German logistics joint venture (JV) with a target GAV of €150 million.

The joint venture will target logistics assets and portfolios across Germany with individual lot sizes starting from €8 million where Europa Capital and Cromwell can leverage their combined active asset management expertise to create value. The JV recently made its first investment, acquiring a 12,000 sqm warehouse property near Cologne and is currently undertaking due diligence on other assets as it continues to build a strong pipeline of future investments.

The JV builds on Europa Capital’s track record of establishing similar platforms across Europe, including in the UK, the Netherlands and Germany in order to capitalise on the demand for warehouse assets where there is tight supply due to strong demand and limited land availability.

Jason Oram, Partner, Fund Manager at Europa Capital, added: “We have seen a significant increase in the demand for light industrial and last mile logistics assets from institutional investors. Real estate allocations have started to shift away from sectors, which have been adversely affected by ongoing structural changes in the industry and the COVID-19 pandemic, towards the logistics space, where we are able to leverage our track record. The sector has proven its resilience during the pandemic, evidenced by the high levels of rent collection we have recorded across our wider portfolio and we firmly believe that rents will grow for well-located assets within this sector over the course of our hold period in this venture.”

James Farmer, Partner, Origination & Acquisitions at Europa Capital, commented: “Strong occupational demand is being driven by a growing need for distribution space, which is putting upward pressure on rents and creating favourable conditions for us to reduce existing vacancies and improve valuations over the anticipated holding period of this platform. Continental Europe lags the US & UK in terms of e-commerce penetration and we believe that this will be a substantial driver of performance in the logistics sector in countries such as Germany over the next five years and beyond. We look forward to working with Cromwell’s team on-the-ground in Germany to source the right opportunities as we assemble a strategic portfolio on behalf of our investors.”

Michael Bohde, Head of Germany at Cromwell Property Group, commented: “We are delighted to be partnering with Europa Capital in order to build an attractive and marketable portfolio of assets over a four to five-year time horizon. As the largest light industrial and logistics market in Europe, Germany provides investors with exposure to a stable macro-economic environment, yields and well-established international brands.”

Real estate investor and manager, Cromwell Property Group (Cromwell) has appointed Tom Duncan as its new Head of Research.

Tom joins from Mayfair Capital, where he spent four years as Director of Strategy and Innovation, responsible for research across Europe and the UK. Prior to this he spent two years at JLL as an Associate Director in their Corporate Research team. He also has experience working in Australia in a research role and in property economics with Colliers International and Hill PDA respectively.

As Head of Research, Tom will be responsible for setting the research strategy for the international platform, producing investment and strategy research to advise the firm and its clients on market and sector opportunities and risks. He is also responsible for creating thematic-based investment strategies and using his experience in economic and property market analysis to support the investment decision-making process.

Pertti Vanhanen, Managing Director, Europe at Cromwell Property Group, said: “Tom has extensive experience driving strategic research projects across Europe, and will be an asset for our clients and for Cromwell as we implement clients investment strategies and establish our new logistics and wooden building funds.”

Tom Duncan, Head of Research at Cromwell Property Group, added: “Cromwell has built a strong real estate platform across Europe over a number of years. I look forward to supporting the Europe business by providing research and analysis to assist the team and our investors make informed decisions.

“I am delighted to start the role and forming an active part of the pan-European investment and fund management platform.”

Tom holds Masters degrees in Property Development from the UTS Sydney and Town and Country Planning from the University of Sheffield, as well as a BA in Human Geography from Nottingham Trent University.

Real estate investor and manager, Cromwell Property Group (Cromwell), on behalf of Cromwell European REIT (CEREIT), has completed the acquisition of a 105,098 sq ft (9,764 sqm) logistics asset for £10.0 million (€11.7 million). With an attractive 5.6% net operating income, this will be CEREIT’s first UK asset in its diversified portfolio and accelerate its pivot to logistics.

This fully-let freehold asset is located in a prime logistics location close to Liverpool and Manchester, providing good connectivity to major motorway networks, two airports and a deep-sea port. The recently refurbished building sits on a five acre site and benefits from a large yard and dual-access loading.

The asset is occupied by Panther Warehousing Ltd, the UK’s leading two-man B2C premium home delivery specialist, with a long-weighted average lease expiry profile of 10 years till May 2031.

Matthew Bird, Head of UK at Cromwell Property Group, said: “We are delighted to have secured such a highly attractive asset on behalf of CEREIT for its first UK acquisition. The UK market remains a strong market for investors, particularly in the logistics and light industrial sector, with investor demand largely driven by a buoyant occupational market tied to the accelerated consumer shift to online retail.

We look forward to continuing to increase CEREIT’s strong portfolio with well-located assets occupied by excellent tenants.” he added.

CEO of the Manager of CEREIT, Simon Garing said: “I am delighted to announce CEREIT’s first acquisition in the UK. We’ve been studying the UK market for some time and actively looking for accretive opportunities for CEREIT to make our entry, and look forward to expanding our footprint in the region.

Cromwell Property Group’s experienced local, on-the-ground team has once again proven their local asset management capabilities and was instrumental in securing this deal amidst the highly-competitive property market in the UK.”

Real estate investor and manager, Cromwell Property Group (Cromwell) has appointed Eeva Saravuo as fund manager of a pan-European wooden building property fund being established in partnership with Finland-based sustainable real asset manager, Dasos Capital (Dasos).

Bringing more than 20 years’ experience from various roles at Aberdeen Standard Investments, latterly as fund manager for Aberdeen’s Finnish and Nordic funds, as well as deputy fund manager for an open-ended real estate fund investing in continental Europe, Eeva will manage the new European wooden building property fund on behalf of Dasos and Cromwell.

The open-ended fund will target an initial first close of €100 million committed equity by the end of calendar year 2021, with a target portfolio value exceeding €1 billion over the longer term.

Cromwell and Dasos will develop and acquire sustainable wooden buildings across real estate sectors and geographies, providing investors with opportunities that meet responsible investment ESG criteria and align with the European Sustainable Finance Disclosure Regulation (SFDR).

Commenting on the appointment, Robert Cotterell, Head of Investment, Europe at Cromwell Property Group, said: “We believe this fund provides a unique and compelling investment opportunity and Eeva’s experience and background will be fundamental to its success. We look forward to working with Eeva to launch the first pan-European wooden building property fund.”

Eeva Saravuo, Fund Manager of Cromwell and Dasos’ European Wooden Building Property Fund, said: “This is a fantastic opportunity to shape the future of sustainable real estate investment.”

“The technology and expertise to develop wooden buildings in all sectors has evolved to a point where it is now a scalable and attractive investment asset class suitable for both large institutional, as well as other smaller, investors.”

“The proposed fund will be one of the few opportunities available to help them meet their own increasingly demanding sustainability objectives,” Ms Saravuo concluded.

Eeva holds a MSc in Real Estate Economics and Valuation from the Helsinki University of Technology as is a certified financial analyst.

Real estate investor and manager, Cromwell Property Group (Cromwell) has promoted Justyna Filipczak to the role of Head of Central and Eastern Europe (CEE).

Cromwell currently has a team of 40 real estate and finance professionals in the region and, as at 31 December 2020, managed €1 billion of office, retail and logistics and light industrial assets let to 562 tenant-customers, covering over 655,000 sqm in Poland, Czech Republic and Slovakia.

As interim Head over the last few months, Justyna has successfully led and navigated Cromwell’s COVID-19 response within the region. This has included overseeing all tenant-customer negotiations and lease renewals as well as the successful acquisition of 12 logistics and light industrial properties in the Czech Republic and Slovakia on behalf of Cromwell European REIT.

Justyna joined Cromwell in 2013 from GE Real Estate rising to Head of Finance, CEE. She had a brief interlude with Multi Corporation in a similar role before returning to Cromwell in 2019.

Pertti Vanhanen, Managing Director, Europe, “Justyna holds in-depth knowledge of the CEE real estate industry combined with extensive experience at Cromwell. Her skills and experience will allow us to continue to expand our operations in the region and grow assets under management.”

“She will be the first female to be appointed as a Country/Region head within the 12 European countries we currently operate in and I’m delighted to be working with her to continue to deliver the great results for our investors and capital partners.”

Justyna Filipczak added, “Cromwell has managed a significant number of assets in the CEE region for a variety of different investors over the last decade. The local team has demonstrated its ability to execute investment and asset management initiatives across a wide range of sectors including logistics and light industrial, office and retail, even during difficult circumstances like the current COVID-19 pandemic.”

“I’m excited about the role, the team and the opportunities that lie ahead,” she concluded.

Justyna has a Masters degree in Management from University of Gdańsk, is a graduate of the GE Financial Management Programme and a previous member of ACCA.

Real estate investor and manager, Cromwell Property Group (ASX:CMW) (Cromwell) welcomes Thomas Kal into Cromwell’s Investment Management Benelux team. He will be based in Amsterdam.

Thomas joins Cromwell after working at JLL for the past six years, initially as a Junior Advisor, before progressing through to Director of Research in 2019. He has extensive knowledge of the logistics and light industrial, office and residential sectors.

Thomas Kal commented, “I am excited to work alongside Gijs Vissers, Cromwell’s Head of Investment Management Benelux, as we continue to implement our growth strategy through strategic asset acquisitions and disposals within the office and logistic sector in order to deliver great returns for investors and capital partners.”

Wouter Zwetsloot, Cromwell’s Head of Benelux and Real Estate Europe, commented, “We are pleased to welcome Thomas who will be a great addition to the team in our drive to increase assets under management and as we move to launch a number of new strategies later in the year.”

Thomas holds a master’s degree in Business Geography and a bachelor’s degree in Human Geography and Planning, both from the Utrecht University.

Real estate investor and manager, Cromwell Property Group (Cromwell) has completed the sale of five industrial assets in Finland for €11.6 million on behalf of a capital partner.

With a total net lettable area of 20,000 sqm, the portfolio of multi-tenanted light industrial assets are all located close to Finland’s major metropolitan and industrial areas including Helsinki, Espoo, Tampere and Oulu, ensuring good access to key roads and transport links.

The properties are currently occupied by 28 tenants, including Bosch Rexroth and Oerlikon Balzers Coating Finland.

Pontus Flemme Gärdsell, Cromwell’s Head of Nordics, said: “To have completed the sale of this portfolio so smoothly demonstrates the competitiveness of the market for this asset type, as well as the advantages of having on-the-ground country teams who understand the underlying regional markets.

“We look forward to continuing to seek both attractive acquisition and disposal opportunities that will generate great results for our different investors and capital partners.”

Real estate investor and manager Cromwell Property Group (Cromwell) has, on behalf of Cromwell European REIT (CEREIT), completed the acquisition of a portfolio of 11 logistics and light industrial properties in Czech Republic and Slovakia for an aggregate purchase price of €113.2 million.

CEREIT’s acquisition is one of the largest deals of its type in the region and grows Cromwell’s real estate platform in Central and Eastern Europe (CEE) specifically in Czech Republic and Slovakia. Both markets are expected to benefit from further integration with neighbouring Western European economies with forecast 4.0% GDP growth in Czech Republic and 5.3% in Slovakia in the next year.¹

Mr Simon Garing, CEO of the Manager of CEREIT, commented, “We are pleased to be able to complete the acquisition of the portfolio, despite continued pandemic disruptions across Europe.”

“Our current focus is on increasing our weighting towards the logistics and light industrial sector and this acquisition takes us to 38%. Importantly, CEREIT now also has a presence in two new attractive high-growth markets.”

“I’d like to thank the transactions and asset management teams at our sponsor, Cromwell, as well as Robert and everyone at Arete for working positively to make this transaction happen,” he added.

David Svoboda, Cromwell’s Head of Asset Management for Czech Republic and Slovakia commented, “We have been active in the wider CEE region for ten years and are now successfully managing more than €1 billion in gross assets for a range of different capital partners.”

“We are focused on ensuring a smooth handover from Arete, welcoming the tenant-customers to the Cromwell family and ensuring they receive the excellent service they are used to,” he concluded.

Robert Ides, Arete Co-founder commented, “Working with Simon and the whole Cromwell team has been a pleasure particularly on such a complex transaction while we are all still feeling the impacts of COVID-19. This is a clear sign of the professionalism of both teams and the similar values and focus on our investors that we both share. It has been an honour to work together.”

The properties are all freehold, almost 100% occupied by 17 mostly logistics tenant-customers and featuring a long-weighted average lease expiry (“WALE”) of 6.2 years. They span more than 125,000 square metres of modern construction logistics and light industrial properties and are located in good micro-locations in established business parks with access to major transport links. The portfolio also features three assets with a total of approximately 140,700 sqm of land permitted for development.

¹ Source: Oxford Economics

Real estate investor and manager, Cromwell Property Group (Cromwell), has announced that it has sold the first office building at Kildean Business Park for £22 million to Aviva Investors on behalf of the Stirling Development Agency (SDA), Cromwell’s joint venture with Stirling Council.

Cromwell’s Head of UK, Matthew Bird, commented, “The office development at Kildean Business Park is a great project, which we believe provides a template for future office developments in the future and adds to Cromwell’s significant pipeline of development projects throughout Europe and Australia.”

“Upon completion, the building will incorporate a range of measures to ensure staff wellbeing and is designed to score highly against a number of key environmental and sustainability benchmarks.”

“We are delighted to have been able to complete this transaction with Aviva Investors, which marks another important milestone in our long-term strategy with Stirling Council and the Stirling Development Agency. Cromwell has been retained by Aviva to undertake the development and benefit from Cromwell’s 40-year track record in the UK and European development in the office, logistics, living and mixed-use sectors,” concluded Mr Bird.

With an estimated completion date of mid-2022, the 77,000 sq ft (7,150 sqm) building is part of a series of planned developments at the 340,000 sq ft (31,600 sqm) business park located near Stirling, an area traditionally popular with financial services and life sciences companies in Scotland’s Central Belt.

The building has been designed to meet stringent ESG objectives and is targeting a BREEAM ‘Excellent’ rating, in part through the use of a number of zero and low-carbon technologies. The business park links into the local cycle network and ample covered cycle spaces, lockers and shower facilities will be provided within the building.

Cromwell announced in January 2021 that M&G Plc signed a 20-year sole occupancy lease for the building.