Friday, May 20, 2022

Cromwell, IGIS to buy logistics assets in Italy for £47.15m


The property group plans to launch a new Fund focussed on logistics assets across Benelux, France, Germany and Italy

Cromwell Property Group and Korean real estate investment manager IGIS Asset Management are to jointly purchase seven logistics assets in Italy for £47.15m to seed a new logistics fund.

Cromwell plans to launch a new Cromwell European Logistics Fund in the fourth quarter of this year to focus on core-plus logistics assets throughout Benelux, France, Germany and Italy, with a target total gross asset value of £361.76m to £452.19m.

Cromwell’s CIO, Rob Percy, said: Logistics is a ’high conviction sector that we believe will prove resilient in these difficult times, providing our capital partners with strong potential for outperformance over the medium term.

Percy told IPE Real Assets there might be many other players in the logistics market in Europe, but the key difference with Cromwell was the firm’s ability to source assets through its network of 200 employees there.

DHL is a client of ours and it came to us with the opportunity to acquire this portfolio, Percy said.

The portfolio of new buildings is located near the northern Italian cities of Milan, Turin, Bologna and Verona. All are leased to DHL on long-term leases, with an overall portfolio WALT of 16 years.

According to a person familiar with the matter, the transaction is expected to close in September.

It would have been settled sooner, but the transaction stalled due to the outbreak of the COVID pandemic, the source told IPE Real Assets.

On capital raising for the new fund, the source said: Cromwell manages big businesses in Australia and Europe, where it would raise capital and IGIS will work with Cromwell to raise future funding from Korean institutional investors.

The source said IGIS had no plans to parlay its interest in the DHL portfolio into a stake in the new logistics fund. At this stage, IGIS and Cromwell are simply warehousing this DHL asset to seed for future collaboration.

Percy said a number of potential institutional investors had shown interest (in the fund) and were poised to begin their due diligence when the fund was launched.

He added that generally for an unlisted wholesale trust, Cromwell would look to retain a 20% to 30% stake in the medium-to-long-term. This included the recently-launched Stratus Cromwell Data Centres Fund, he added.


The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply