Cromwell Property Group, an Australia (AUD)-based real estate investment trust company, has partnered with South Korean peer IGIS Asset Management to buy seven logistics properties in Italy for A$85.7 million ($61.3 million).

The acquisition is expected to form the seed portfolio for a new Cromwell European Logistics Fund, targeting core logistics assets in France, Germany, and Italy with a gross asset value of $464 million to $571 million.

The seven properties, situated in northern Italy, near the cities of Milan, Turin, Bologna, and Verona, are fully let to DHL on long-term leases with an overall weighted average lease term of 16 years.

Furthermore, two of the seven logistics assets are brand new while the other five centers have been occupied by DHL since their construction. More so, the deal is anticipated to close in September 2020.