Cromwell takes another shot at listing European IPO

Cromwell takes another shot at listing European IPO

PC Lee
23/11/17, 04:15 pm

SINGAPORE (Nov 23): Two months after aborting the initial public offering (IPO) process, Australia’s Cromwell Property Group is pushing ahead with the Singapore listing of its European REIT, this time smaller in size.

See: Cromwell launches $1.5 bil CEREIT IPO in Singapore

See also: SGX gives nod for Cromwell European REIT’s proposed $1.6 bil IPO

On Wednesday, sponsor Cromwell lodged its revamped Cromwell European REIT (CEREIT) which is selling 428.5 million units at EUR 0.55 each -- or the bottom of the range in the first IPO attempt -- to raise gross proceeds of EUR 236 million ($376 million) in conjunction with its listing on the Singapore Exchange.

In the placement tranche, 392.2 million units will be offered to institutional investors while 36.4 million units will be made available in the public tranche.

Separately, cornerstone investors have agreed to subscribe to 581.8 million shares.

The listing will raise total proceeds of EUR 866 million.

Opened on Wednesday, the public offering will close at noon on Nov 28. Trading of its units will start on Nov 30.

In its initial attempt in September, Cromwell aborted plans to launch CEREIT's IPO of up to EUR 927 million, citing tepid demand for its units as investors remained wary in a volatile global market.

See: Cromwell European REIT IPO shelved on weak investor demand: reports

In the latest offering, the sponsor has nearly tripled its shareholding in CEREIT to 35.8% from 12–13% in the first attempt.

The sponsor has also removed seven Polish retail properties from its proposed portfolio as investors were said to be doubtful of their value.

According to the prospectus, net proceeds from the IPO will be used to acquire 60 properties in Denmark, France, Germany and the Netherlands from funds managed by Cromwell Property Group for third-party investors, and 14 Italian properties from independent third parties.

CEREIT's portfolio has total appraised value of about EUR 1.4 billion, focusing on the office, light industrial and logistics sectors.

CEREIT will have a yield of 7.8%, which is above the average 6% yield of Singapore REITs.


Singapore's housing dilemma: What are the broader implications?

SINGAPORE (Sept 17): In the past year and a half, the issue of the 99-year leases on Housing & Development Board (HDB) flats has triggered much debate. Now might be a good time to step back and examine what exactly has changed as a result of this debate and what the broader implications are. In fact, this issue could be a major game changer in many areas. Certainly, housing market dynamics will change, there could be shifts in savings behaviour and we are also likely to see major policy changes over time. These are big changes and it is important that Singaporeans have a clear understandin....

Najib to be charged tomorrow for RM2.6 bil in accounts

SINGAPORE (Sept 19): Malaysia’s former prime minister Najib Razak has been arrested today in connection to RM2.6 billion ($860 million) of 1MDB funds deposited into his personal account. According to a press release issued by the Malaysian Anti-Corruption Commission (MACC), Najib was arrested earlier today at 4.13pm at the MACC headquarters in Putrajaya. The former premier will be brought to the Kuala Lumpur Sessions Court tomorrow (Sept 20) at 3.00pm to face “several charges” under Section 23(1) of the MACC Act. The MACC also said that it will cooperate with the police to recor....

HNA explores sale of newly acquired CWT logistics unit

HONG KONG (Sept 19): China's HNA Group is in talks with banks to find a buyer for its CWT logistics unit, nine months after it acquired the Singaporean business in a US$1 billion  ($1.4 billion) deal, several people familiar with the matter told Reuters. See: CWT receives formal US$1 bil takeover offer from HNA See: HNA to face $3.1 bil liquidity crunch this quarter See: HNA's fire sale gets into full swing from Hong Kong to London See: HNA Group co-chairman Wang Jian dies after accident in France The sale, if completed, would be the latest in a series of divestments aimed ....