Cromwell to List European Portfolio on Singapore Exchange
Cromwell European Real Estate Investment Trust (Reit) lodged its revamped prospectus this week, confirming its offer of 428.5 million units to raise gross proceeds of €236 million (S$376 million) on the Singapore Exchange.
Cromwell's first attempt to list the portfolio was aborted two months ago when "market conditions" were blamed for the poor take up. Cromwell has since increased it's stake and revised the portfolio which mow comprises 74 properties after excluding seven Polish retail assets. Cromwell is projecting a distribution yield of 7.8% for 2018
Cromwell Property Group (ASX:CMW) (Cromwell, the Sponsor) announces that its wholly-owned subsidiary, Cromwell EREIT Management Pte. Ltd., has today registered a Prospectus with the Monetary Authority of Singapore (MAS) for the initial public offering (IPO) of Cromwell European Real Estate Investment Trust (CEREIT). The CEREIT IPO is fully underwritten by Goldman Sachs, UBS, DBS, Daiwa and CLSA. CEREIT is expected to commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) at 2.00pm SGT on 30 November 2017.
CEREIT’s initial portfolio comprises 74 properties with an aggregate lettable area of approximately 1.1 million sqm and a total appraised value of approximately €1,354 million as at 30 April 2017. The 74 properties are located across five countries in Europe (Denmark, France, Germany, Italy and the Netherlands) with a focus on the office and light industrial / logistics sectors. “After re-engaging with investors, and considering feedback from strategic partners and market conditions, we are delighted to be able to register the Prospectus with MAS,” said Cromwell CEO Paul Weightman.
CEREIT has been well supported by investors, with a clear investment focus on office and industrial assets in key Western Europe gateway cities and will offer an attractive initial yield based on the issue price of CEREIT units. Cromwell’s Sponsor stake is valued at approximately €310 million2 and is fully funded. “We are pleased with the strong support we have received and look forward to the listing next week,” Mr. Weightman concluded.