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.