REITspots: Cromwell European REIT's Properties

CEREIT owns 110 predominantly logistics / light industrials and Grade A office assets with ~75% in four core European markets. This visit was done on a Tuesday morning, therefore there'll be a good indication of occupancy of the offices and light industrial properties we'll visit. 2 of the properties (De Ruyterkade 5, Veemarkt) are located in the city of Amsterdam, Capronilaan 22 – 56 is located on the outskirts while Haagse Poort is located in The Hague.

Cugat Green (The 3 properties within Amsterdamleft) and Parc Cugat (right)

Q: How will the recent Stoneweg acquisition affect Cromwell European REIT?

The Manager’s Chief Executive Officer, Mr Simon Garing, commented in the recent announcement, “We look forward to working with @Stoneweg in its capacity as CEREIT’s incoming Sponsor. We are pleased that @Jaume Sabater and his team are aligned with our belief in the quality and value of CEREIT’s portfolio, as well as its growth outlook and potential. We recognise Stoneweg’s strong track record and established presence and focus on Europe. We share similar corporate values and commitment to the high level of environmental, social and governance standards CEREIT has become known for in Asia. We look forward to leveraging Stoneweg’s expertise and capabilities, which will enhance Cromwell’s existing European platform. We believe the combined platform will have excellent on-the-ground asset and property management expertise and acquisition sourcing capabilities and contribute to the sustainable growth of CEREIT.”

"De Ruyterkade 5 is an office building of 8,741 sqm spread over 6 floors. The building has 56 parking places in the garage and 38 parking places on its own grounds. In the immediate vicinity there are many facilities such as: Amsterdam Central Station, Muziekgebouw aan ‘t IJ and Passenger Terminal Amsterdam. The Jordaan with small shops and cozy streets and alleys is within walking distance." – Cromwell European REIT website.

The building is located next to Central Station and can therefore be reached within a few minutes’ walk from the train, bus, tram and metro. De Ruyterkade 5 is 10 minutes from the A10 West motorway via the S102 Sloterdijk / Teleport exit, the Transformatorweg / Spaarndammerdijk (S101) and the Archanchangelweg. Schiphol is a 20-minute drive away.

Facade of Sant Cugat GreenFaçade of De Ruyterkade 5

List of tenants

The single tenant in this building is the KVK, or the Netherlands Chamber of Commerce. Some of the office space is sub-leased to other tenants.

Reception area of De Ruyterkade 5

The property looks very well-furnished. Shown here is the restaurant area

Interior of the ground floor

View from the rooftop.

Note the Amsterdam Centraal Station on the right. Due to the very good location of De Ruyterkade 5, there is a potential to redevelop this property.

" Veemarkt is located in Amsterdam, in particular on the Cruquius Island, part of the former Eastern Harbour area in the eastern central part of Amsterdam. The property is divided into seven separate light industrial buildings, which themselves are subdivided into various units. Approximately 100% of the total site is developed, split approx. 40/60 office/business space.”– Cromwell European REIT website.

The Veemarkt is located on the east side of Amsterdam in the Zeeburg district. The complex is easily accessible by private transport via the Piet Hein tunnel and the A10 ring road and very well served by public transport (buses 22, 65 and 289 and tram 14).

This part is scheduled for repainting works in the later part of the year.

There are approximately 100+leases in Veemarkt. This property is 100% occupied, with 10 tenants in the waiting list. Approximately 1 in 3 of the properties here are freehold. Another thing I have seen is how fully occupied properties in Central Amsterdam are. This is due to the major regulations required for new builds in the city, which results in very low vacancies. In addition, there is a possibility of redevelopment of Veemarkt to increase the lettable area due to its very good location.

"The property originally comprises six units, situated on circa 0.8 ha of land. The units vary in size and lay-out. Currently the building is divided into two units. Five units are connected and leased by a single tenant with the last unit being separate.” – Cromwell European REIT’s website.

Capronilaan 22 – 54 is located on the spaciously designed Park Rijk. Park Rijk can be reached from the A4, A5 and A9 motorways via the N201. Schiphol Centre can be reached within 7 minutes and Amsterdam is 15 minutes away by car. The regional bus lines (lines 187, 194 and 287) ensure the connection to Schiphol and Hoofddorp train station.

Me on site!

Interior of the Light Industrial property

Q: How are Cromwell European REIT properties faring in terms of Environmental targets?

“We are very engaged in meeting environmental regulations across our portfolio. An example is here in Capronilaan 22 – 54, where we have proactively carried out PV installations for our tenants. We then sell the electricity either to our tenants or back to the grid depending on the occupancy. This provides ~8% of additional income for this property.”

PV installations on the rooftop of Capronilaan 22 – 54 

“The recent installation of the PV panels, in combination with renewing and insulating the roof covering will improve the EPC rating of this property from C to at least A+. In addition, we have installed water flow monitoring devices, which help to detect abnormal water usage (e.g leaks) and allows to respond to such issues promptly.”

Smartwater devices in one of the utility boxes

" The Haagse Poort is an impressive office building of approximately 68,500 sqm. The building consists of a high-rise and a low-rise section, connected by the arch from the seventh floor. This arch spans the Utrechtsebaan, making it the modern city gate of The Hague. The Haagse Poort was developed in 1994 and has a high-rise of 16 floors and a lowrise of 7 floors. In the Haagse Poort there are two restaurants, one espresso bar and a grand café." – Cromwell European REIT’s website.

The Haagse Poort is in the Beatrixkwartier, in the Bezuidenhout, near the centre of The Hague. The office spans the A12 motorway towards Utrecht. The A13 towards Delft and Rotterdam and the A4 towards Amsterdam can be reached within a few minutes via the A12. The Randstadrail stop is 150 meters away. Various buses and trams stop in front of the building.

Me on site!

The impressive reception area of Haagse Port

During our visit there, only 1 unit was vacant. This is the view of the vacant unit

The view of The Hague from the office building. The whole building (circled in blue) is also of Haagse Port

An example of an Asset Enhancement Initiative by CEREIT are the changing of glass to insulated glass panels for Haagse Port. This reduces heat loss in the winter and heat gain during the summer, reducing energy consumption. Also visible are the solar panels for harnessing renewable energy for the building.

We also had the opportunity to have lunch at this well-furnished restaurant. It was very busy during lunch hour on a Tuesday.

Façade of Haagse Port, CEREIT’s largest office building in its portfolio.

Conclusions

This site visit to some of Cromwell European REIT’s key office properties has been eye opening. I got to see first-hand how physical occupancy is back to pre-Covid levels in Europe, where flexible work was a practice well before the pandemic. In addition, we saw that ongoing Asset Enhancement Initiatives (AEIs) of office buildings as well as the initiatives that REITs are taking as part of their ESG Commitments, a key differentiator and value-add of the office sector in Europe. I would like to thank Cas and Addy for their time during this property tour, and for Elena for helping us to arrange this tour.