Valad Europe, part of Cromwell Property Group (ASX:CMW) and a leading European real estate investment manager, has completed a €175 million (A$252 million*) senior debt facility for its Valad European Income Fund (VEIF), concurrently with an extension to the life of the Fund, with the unanimous support of its Investors' Advisory Committee. The debt facility is jointly underwritten by Deutsche Pfandbriefbank AG (pbb) and Landesbank Hessen-Thüringen Girozentrale (Helaba).

The refinanced portfolio comprises 40 light industrial assets with a gross leasable area of 550,000 sqm in France, Germany and the Netherlands. A refinancing of the Danish portion of the portfolio will shortly be completed, to match the maturity of the Fund.

Thierry Leleu, Valad Europe's Head of Funds Management, commented: "This is a great result for our investors in the Fund. This new €175 million (A$252 million) loan facility provides us with an excellent opportunity to arbitrage the portfolio in an improving market. I am also thankful for the support of our banking partners, pbb and Helaba.

The extension of the Fund's term allows for maximising equity returns through improving occupational markets and improved liquidity as industrial assets continue to attract more institutional buyers and weight of capital flowing into real estate increases seeking yield. This should create the opportunity for further value creation. We would like to thank our investors for their continuous support."

Commenting on the refinancing, Charles Balch, Head of International Clients, UK and CEE, at Deutsche Pfandbriefbank, said: "As joint arranger with Helaba, we are delighted to have been able to support Valad Europe on the refinancing of VEIF. Valad is a very important client for pbb and we look forward to continuing our successful relationship across Europe."

Georg Blaschke, Director for Helaba's Origination in Continental Europe, also commented: "Helaba has a long standing relationship with Valad Europe in various markets and we are very happy to further extend this facility."

Valad European Income Fund is a pan-European multi-let industrial fund comprising 700,000 sqm of space across 52 assets in Denmark, France, Germany and the Netherlands. The Fund has a mandate to invest in light industrial estates with the potential for high income and capital growth. The Fund is managed by Valad Europe.

Valad Europe manages €5.3 billion (A$7.7 billion) of real estate assets and investment capacity across its 24 funds and mandates in Europe, comprising in excess of 400 assets and approximately 3,700 tenants, managed by local teams totalling 180 people in 22 offices and 13 European countries.

Media Enquiries:
Paul Weightman
Managing Director/CEO
+61 411 111 028
pweightman@cromwell.com.au

About Cromwell Property Group

Cromwell Property Group (ASX:CMW) is a Real Estate Investment Manager with operations in Australia, New Zealand and Europe. The Group is included in the S&P/ASX 200. Cromwell has a market capitalisation in excess of $1.9 billion, a direct property investment portfolio in Australia valued at $2.2 billion, and a thriving funds management business with $12.1 billion of assets under management across Australia, New Zealand and Europe.

* Assumes a conversion rate (EUR:AUD) of 1.444

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