Real estate investor and fund manager Cromwell Property Group (Cromwell) has recently completed, on behalf of Cromwell European REIT (CEREIT), the acquisition of two light industrial / logistics assets in Lombardy at a combined purchase price of €51 million.
ABB, Vittuone, Milan, Italy
Located 25 kilometres west of Milan’s city centre, ABB is a 63,221 sqm freehold light industrial / logistics asset, situated on a 99,760 sqm site, presenting a potential future redevelopment opportunity for urban logistics. Last refurbished in 2021, it consists of a principal main building for industrial activities and several associated attached and detached office buildings.
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 on a ‘full repair’ lease with a no break option contract to ABB, a Fortune 500 company trading on three stock exchanges - Zurich, Stockholm and New York.
Bialetti Headquarters, Coccaglio, Brescia, Italy
This freehold, light industrial / logistics asset comprises two buildings with 44,644 sqm of total lettable area on a 74,533 sqm site. Its specification standard is close to the modern grade A warehouse, with 12 loading doors and a large car park with approximately 360 public and private parking spaces. It is currently 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.
The asset is located in the Brescia macro area, approximately 72 kilometres east of Milan. It sits within one of the leading Italian light industrial / logistics hubs in Lombardy, Italy’s wealthiest and most industrialised region. It is well served by several critical logistics corridors in Italy, including the A4 highway and A35, and lies within the strategic broader Trans European Transport Network Mediterranean corridor running from Spain to Eastern Europe.
Lorenzo Caroleo, Head of Italy at Cromwell Property Group, said: “We’ve acquired these properties on behalf of CEREIT at what we believe are very attractive entry yields considering not only the current fierce competition in the logistics sector but also the assets’ relatively large footprints, specifications, excellent location and lease terms and covenants. These assets will provide flexibility towards potential future income and value-accretive asset management or development activity.
The Italian logistics market continues to remain attractive with demand driven by the appetite for good-quality, well-located assets which can support the manufacturing and production of large international businesses. Over the past two years, Cromwell has been a very active player locally, securing the DHL portfolio with the intention to seed its European logistics fund and subsequently four logistics assets for CEREIT totalling more than €120 million. We expect to remain very active in the coming months, deploying capital in the sector as further opportunities materialise.”
Both transactions were supported by technical advisors Yard REAAS and SFRE. K&L Gates acted as the legal and tax advisor for the ABB transaction. Greenberg Traurig acted as the legal advisor for the Bialetti transaction alongside tax advisor Pirola Pennuto Zei.