Cromwell European Reit

[cyclone]

Cromwell European Reit hopes to raise $2b from IPO
It will issue units at between 55 and 57 euro cents each

by Marissa Lee
Sep 09, 2017

Cromwell European Reit has lodged a preliminary prospectus for a listing on the Singapore Exchange (SGX) mainboard, with plans to start trading on Sept 28.

The real estate investment trust, which draws rental income from 81 properties in six European countries, expects to raise gross proceeds of up to €1.25 billion (S$2 billion). Units will be issued at between 55 and 57 euro cents a unit.

Based on the IPO price range, the Reit is forecasting a distribution yield of 7.5 to 7.7 per cent for next year.

The offer size of 1.58 billion units consists of an international placement tranche of about 1.2 billion units, a Japanese public offering of 268 million units, and 79 million units that will be offered to the Singapore public.

The public offering will open at 9pm on Sept 21 and close at 12pm on Sept 26, based on its indicative timetable.

More details in http://www.straitstimes.com/business/com...b-from-ipo

[cyclone]

Cromwell European Reit's public offer 3.1 times subscribed

ANDREA SOH
WED, NOV 29, 2017 - 9:26 PM

CROMWELL European Reit's public offer was about 3.1 times subscribed, its manager said.

In an exchange filing on Wednesday evening, Cromwell Ereit Management Pte Ltd announced that it had received 4,448 valid applications for 111.23 million units.

The Reit had 36.36 million units available for the public offer, which closed at 12 noon on Tuesday (Nov 28).

It had also offered 392.17 million units for an international placement, which was oversubscribed as well. The manager, however, did not say how much more the placement tranche was subscribed by.

Under the placement tranche, DBS Bank Ltd - Treasury Investments was allocated 27.27 million units, while SeaTown Master Fund, which is related to Temasek Holdings, was given eight million units.

UBS Asset Management (Hong Kong) Ltd received 2.7 million units, Cerberus Singapore Investor LLC 1.8 million units, and independent director Lim Swe Guan 396,400 units.

More details in http://www.businesstimes.com.sg/companie...subscribed

[cyclone]

Dual Currency Trading of Units on SGX-ST

Cromwell EREIT Management Pte. Ltd., as manager of Cromwell European REIT (“CEREIT”) announced that CEREIT has today received the “no objection” notification from Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the trading of units in CEREIT on the dual currency trading platform of the SGX-ST.

Accordingly, the Manager is pleased to announce that with effect from 9.00 a.m. on Monday, 16 April 2018, Units will commence trading on SGX-ST in Singapore dollars (“S$”) (in addition to Euro (“€”)).

The Units are currently quoted and traded only in €. With the implementation of the dual currency trading of the Units from 16 April 2018, CEREIT will have a S$ counter in addition to its existing € counter and investors will be able to buy or sell the Units through either counter given the fungibility of Units between the two counters.

[MINX]

Dual Currency Trading of Units on SGX-ST

Cromwell EREIT Management Pte. Ltd., as manager of Cromwell European REIT (“CEREIT”) announced that CEREIT has today received the “no objection” notification from Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the trading of units in CEREIT on the dual currency trading platform of the SGX-ST.

Accordingly, the Manager is pleased to announce that with effect from 9.00 a.m. on Monday, 16 April 2018, Units will commence trading on SGX-ST in Singapore dollars (“S$”) (in addition to Euro (“€”)).

The Units are currently quoted and traded only in €. With the implementation of the dual currency trading of the Units from 16 April 2018, CEREIT will have a S$ counter in addition to its existing € counter and investors will be able to buy or sell the Units through either counter given the fungibility of Units between the two counters.

Why so much hassle? Why not simply trade it in S$? How many would want to attempt trying to squeeze a little more juice from the FX difference?

[specuvestor]

Non S$ counters have generally far less liquidity. They ought to know that when they IPO here

Bank exchange rate may not be just little juice

[cyclone]

Cromwell European REIT to buy 11 properties in Czech and Slovakia for $183.6 million

The Edge Singapore Published on Fri, Dec 11, 2020 / 9:49 AM GMT+8 / Updated 9 hours ago

Cromwell European REIT plans to buy 11 new logistics and light industrial properties in the Czech Republic and Slovakia for €113.2 million ($183.6 million) – slightly below an independent valuation of €115.6 million.

The properties, which have a gross lettable area of 125,435 sq m, are now almost 100% occupied, with WALE of 6.2 years.

Simon Garing, CEO of the REIT manager, says that the acquisitions are in line with the REIT’s stated strategy to increase CEREIT portfolio’s exposure to stable, relatively high-yielding logistics and light industrial assets.

Together with the other light industrial and logistics acquisitions in 2020, CEREIT has added a total of €220.2 million in light industrial and logistics assets to its portfolio, all acquired off-market.

“We are pleased to welcome 17 largely multinational logistics, e-commerce and manufacturer tenant customers to our diverse tenant-customer roster,” says Garing.

More details in :
1. https://www.theedgesingapore.com/news/re...36-million

See also :
1. https://links.sgx.com/1.0.0/corporate-an...c_2020.pdf
2. https://links.sgx.com/1.0.0/corporate-an...c_2020.pdf

[weijian]

The Sponsor/property manager is Cromwell Property Group, which itself is listed on ASX and ESR has a ~30% stake. Indirect round 2 between Quarz Capital and ESR after Round 1 at Sabana REIT?

Quarz Capital Urges Cromwell European REIT to Commence Unit Buyback to Increase Potential Dividend Yield from ~13.2% to more than ~14%

Quarz Capital with its affiliates collectively are one of the top 10 unitholders of Cromwell European REIT ("CEREIT", "Cromwell REIT", "CERT SP", "SGX: CWBU" or "SGX: CWCU"). We commend the Cromwell team for its first-rate operational execution. Our investment demonstrates our conviction that CEREIT is a highly attractive investment opportunity.

We want to be very clear that we are highly supportive of the current management team, not only for its operational achievements, but also its strong commitment to ESG and investor relations. Our only concern relates to the unit buyback program which we believe should be executed immediately to benefit CEREIT and its unitholders.

https://www.prnewswire.com/apac/news-rel...84398.html

[weijian]

Back of envelope calculations:

- Total price: 280 million euros
- Cost of the CE Reit units = 156,233,700 x 1.52 = 237.5mil euros

- Price of Asset/Property Mgr = 280 - 237.5 = 42.5mil euros
- FUM = 2.25billion euros (end FY23)
- Price of Asset/Property Mgr as % of FUM = 42.5/2250 = 1.8% of FUM

1.8% of FUM is a relatively cheap price for the asset/property manager, with the purchaser a relatively young asset manager themselves (9 years track record in Europe).

Cromwell European REIT (CEREIT) to welcome Stoneweg as new Sponsor and substantial unitholder

SINGAPORE – Cromwell EREIT Management Pte. Ltd., the manager (the “Manager”) of Cromwell European Real Estate Investment Trust (“Cromwell European REIT” or “CEREIT”), today announced that its Sponsor, Cromwell Property Group (“Cromwell”), has entered into a sale and purchase agreement for a total consideration of approximately €280 million to divest:

(1) Cromwell’s entire 27.79% stake or 156,233,700 CEREIT units (€1.52/unit, representing 7.3% premium to the three-month VWAP1)
(2) Cromwell’s 100% interest in the Singapore Manager of CEREIT
(3) Cromwell’s 100% interest in Cromwell European Holdings Limited (the property manager of CEREIT) which employs over 200 staff in 14 offices across 12 countries in Europe, including countries in which CEREIT assets are located; and
(4) other associated co-investments

https://links.sgx.com/FileOpen/CEREIT_We...eID=804238

[Shrivathsa]

One interesting thing I noticed is that while logically the SGD listed counter should have higher liquidity, at least for Cromwell, the EUR counter is the one with higher liquidity, though the spread is tighter for SGD counter.     . The H1 report is showing like for like growth PowerPoint Presentation (sgx.com). Realistically 10% dividend yield is too high, so assuming 14 Euro Cents per year annual, and 8% yield,since it is relatively unknown, guess that Euro 1.75 is the best case price

[weijian]

The existing (soon to be ex) Mgr of CE REIT has asked for a change of control waiver and managed to secure waivers for all except 1 of them (~5% of total loan facilities).

This is a good case study for what may happen to Sabana REIT in future, although it is not a direct comparison as Sabana's existing Mgr had been voted off while CE REIT Mgr is a motivated seller who is more than happy to pay 4mil to foot the higher interest bill for the refinancing.

UPDATE ON STONEWEG TRANSACTION, CEREIT REFINANCING AND ANNOUNCEMENT PURSUANT TO RULE 704(31) OF THE LISTING MANUAL OF THE SINGAPORE EXCHANGE SECURITIES TRADING LIMITED

The Manager wishes to update that all change of control waivers sought in relation to the Transaction have been successfully received with the exception of one lender in relation to the €82,375,000 debt facility secured against three office assets in the Netherlands (“NL Office Loan”). The NL Office Loan had a fixed interest rate of 1.93% and a maturity date in December 2026.

In order to facilitate the closing of the Transaction, the Manager has decided to refinance the NL Office Loan early.

Due to the higher all-in interest rate expected from ABN Amro’s 5-year new loan compared to the fixed rate NL Office Loan, the Manager is pleased to announce that on 10 December 2024, CEREIT received a sum of €4 million from its sponsor, Cromwell Property Group, to offset such higher interest costs expected to be paid for the ABN Amro Facility over the remaining term of the original NL Office loan. This ensures that CEREIT’s distributable income is not impacted due to the early refinancing of the NL Office Loan as a result of the Transaction.

https://links.sgx.com/FileOpen/CEREIT_SG...eID=828114