Cromwell European Reit *Official* (SGX:CWBU)

Shion

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Cromwell on track for $1.6b European Reit IPO on SGX

http://www.straitstimes.com/business/cromwell-on-track-for-s16-billion-european-reit-ipo-on-sgx

SINGAPORE - Australia-listed Cromwell Property Group said on Thursday (Aug 24) it has received the go-ahead from the Singapore Exchange to lodge a prospectus for the initial public offering (IPO) of Cromwell European Real Estate Investment Trust.

If all goes according to plan, the prospectus will be lodged in early September and the IPO will occur at the end of next month.

The SGX has issued its Eligibility-To-List with regard to the proposed IPO.

The estimated offering size is about 1 billion euros (S$1.6 billion).

As earlier reported by The Straits Times, this Reit would comprise European properties with a focus on Europe's smaller cities.
 

Mr. Wood

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CROMWELL is Australia listed, but reit wants to list in Sg? dun understand whai dey dun list reit in Australia or Europe?
 

limster

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CROMWELL is Australia listed, but reit wants to list in Sg? dun understand whai dey dun list reit in Australia or Europe?

SGX offer them incentive like lower costs etc? ASX overcrowded? The $1bn market cap of the REIT seems almost as large as the market cap of the parent company?
 

kehyi4

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Appetite for reits is strong in SG.

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kehyi4

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ST: Cromwell European Reit prices mainboard IPO at 55 - 57 euro cents; 7.5 - 7.7% yield in 2018

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

The real estate investment trust, which draws rental income from 81 properties across six cities in Europe, expects to raise gross proceeds of up to 1.25 billion euros (S$2 billion) by issuing 1.58 billion units at between 55 euro cents 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 2018.

The offer size consists an international placement tranche of 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 September 21 and close at 12pm on September 26, based on its indicative timetable.

Cromwell European Reit will have a market cap of between 1.2 billion to 1.25 billion euros upon its debut.

The Reit has a portfolio of retail, office and light industrial properties across gateway cities in Denmark, France, Germany, Italy, the Netherlands and Poland, valued at 1.83 billion euros.

The Reit has over 1,000 leases and a weighted average lease expiry of 5.1 years, which means that no more than 12 per cent of headline rent will expire in each year up to 2021.

About 69.1 per cent of the property portfolio comprises freehold land.

The IPO has two cornerstone investors - Cerberus Singapore, which is taking up a 7 per cent stake, and Hillsboro Capital with 8 per cent stake. Cerberus is affiliated to the vendor of certain of the Reit's properties.


The Reit sponsor is Australia-listed Cromwell Property Group, which has a market cap of roughly A$1.7 billion.

Cromwell will take up a stake between 8 per cent to 12.7 per cent in the Reit, depending on whether the over-allotment option is exercised.

The Reit manager, Cromwell EReit Management, said it chose to structure the Reit to have a high free-float as its aim is to be eligible for regional index inclusion shortly after listing.

With an aggregate leverage of between 34.3 per cent to 36.6 per cent, below the ceiling of 45 per cent, the Reit has ample borrowing capacity to fund growth acquisitions, it added.


Goldman Sachs and UBS are the joint issue managers. They are also the joint bookrunners and underwriters together with DBS, Daiwa Capital Markets and CITIC CLSA Securities.

This will be the largest IPO since NetLink NBN Trust, which had a market cap of S$3.1 billion upon its IPO in July. It S$2.3 billion offer size the biggest seen here in six years.

Cromwell EReit's listing would be the 14th IPO on the SGX this year.

The Reit will be Singapore's first euro-denominated Reit. Distributions will be declared in euros and paid in Singdollars, unless investors opt to receive the distributions in euros.
 
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Perisher

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not much discussion about this IPO unlike the previous few... gonna be open to application soon... hmmm..
 

havetheveryfun

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not much discussion about this IPO unlike the previous few... gonna be open to application soon... hmmm..

overseas reit all not much discussion one like in the past .. ireit global, Manulife us reit, etc... think maybe cos ppl know reits not much upside for flippin ? more for dividend yield
 
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