Singapore’s Cromwell European REIT Sells Largest Office Property In Finland
FINLAND – Singapore-listed Cromwell European REIT (CEREIT) has concluded the sale of the Opus 1 office property in Finland to local buyer Julius Tallberg-Kiinteistöt Oyj, according to a Singapore Exchange (SGX) filing published on Thursday morning (7 July, SGT).
The commercial property was sold for €16.2 million (approx. S$23.3 million), which is 6.4 percent higher than its independent valuation on 31 December 2021. It also represents a 20 percent premium to its purchase price. The consideration was arrived on a willing buyer and willing seller basis.
Opus 1 is touted as the trust’s largest office property in the European country, and it has around 6,821 sq m of net leasable area (NLA). At present, it has an office occupancy rate of about 90 percent.
Situated at Hitsaajankatu 20 – 24 in Herttoniemi, which is about 8 km east of central Helsinki, the commercial property was built in 2008.
It was purchased by Cromwell European REIT for €13.5 million (approximately S$19.4 million) on 28 December 2018. It was valued by CBRE at €15.2 million as of 31 December 2021 utilising the income capitalization method.
A divestment fee of €81,000 (being 0.5 percent of the consideration) is payable to CEREIT’s manager in accordance with the trust deed constituting the Singapore REIT.
The divestment effectively reduces CEREIT’s real estate portfolio exposure to Finland by 15 percent to 3.6 percent, down from 4.4 percent as at 31 December 2021.
