Under the sale agreement, CEREIT will buy all the shares in target company Challenger DPG France SAS, which holds the three properties, from seller CDPG Luxembourg.
The estimated aggregate purchase consideration of EUR 21.6 million ($33.8 million) which includes a EUR 1.7 million injection of cash as working capital for Challenger.
CEREIT’s manager says the acquisition will be financed with debt and equity from the REIT’s EUR 224.1 million rights issue.
CEREIT’s manager says the target properties have a net initial yield of 8.5% which compares favourably to the net initial yield of CEREIT's existing light industrial and logistics portfolio of 7.1%. The French properties will also see an increase in its portfolio valuation by 2.6%.
Year to date, units in CEREIT are down 19.2% to EUR 42 cents.
