Cromwell European REIT (Euro)
Australia's Cromwell Property Group is going ahead with its plan to list its Europe-based real estate investment trust (Reit) in Singapore - less than two months after it put the brakes on the initial public offering (IPO) process.
Cromwell is eyeing a market capitalisation of roughly €865.7 million (S$1.4 billion) after the IPO, at an issue price of €0.55 for each unit, inclusive of the sponsor's stake.
The REIT will have a distribution yield of 7.80% in 2018.
The REIT will hold 74 properties across 5 Western European countries. Netherlands, Italy and France account for 34.5%, 29.9% and 22.1% of the portfolio. The remaining properties are located in Germany and Denmark.
Office and light industrial / logistics properties account for 47.4% and 22.1% of the portfolio respectively. The portfolio also includes 3 government led compuses, one retail asset and one hotel in Italy. Overall assets have weighted average lease expiry of 4.9 years.
Besides tax and working capital, the IPO proceeds would also go towards acquiring properties for the Cereit portfolio, the prospectus said.
The revised IPO portfolio is now set to comprise 74 properties, primarily in the office and light industrial and logistics sectors, across five countries in Europe - namely Denmark, France, Germany, Italy and the Netherlands.
Cromwell management's Chief Investment Officer Thierry Leleu said:
"Europe has seen a decline in unemployment, strong household consumption and GDP growth. When you couple that with one of the legacies of the global financial crisis, which was very little new supply being made available, that actually bodes very well for real estate, because the logical consenus is that there will be upward rental growth, notablely in the gateway cities where our portfolio will be focused."
Source: The Edge
Clients from private bank can invest into the REIT for 7.80% yield using 1% Euro loan. Hence net yield is 6.80% without FX risk.
If you are interested to speak to a private banker, send email to metal.commodity@gmail.com.
Cromwell is eyeing a market capitalisation of roughly €865.7 million (S$1.4 billion) after the IPO, at an issue price of €0.55 for each unit, inclusive of the sponsor's stake.
The REIT will have a distribution yield of 7.80% in 2018.
The REIT will hold 74 properties across 5 Western European countries. Netherlands, Italy and France account for 34.5%, 29.9% and 22.1% of the portfolio. The remaining properties are located in Germany and Denmark.
Office and light industrial / logistics properties account for 47.4% and 22.1% of the portfolio respectively. The portfolio also includes 3 government led compuses, one retail asset and one hotel in Italy. Overall assets have weighted average lease expiry of 4.9 years.
Besides tax and working capital, the IPO proceeds would also go towards acquiring properties for the Cereit portfolio, the prospectus said.
The revised IPO portfolio is now set to comprise 74 properties, primarily in the office and light industrial and logistics sectors, across five countries in Europe - namely Denmark, France, Germany, Italy and the Netherlands.
Cromwell management's Chief Investment Officer Thierry Leleu said:
"Europe has seen a decline in unemployment, strong household consumption and GDP growth. When you couple that with one of the legacies of the global financial crisis, which was very little new supply being made available, that actually bodes very well for real estate, because the logical consenus is that there will be upward rental growth, notablely in the gateway cities where our portfolio will be focused."
Source: The Edge
Clients from private bank can invest into the REIT for 7.80% yield using 1% Euro loan. Hence net yield is 6.80% without FX risk.
If you are interested to speak to a private banker, send email to metal.commodity@gmail.com.
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