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.


AusGroup to buy housing village & facilities on Australia's Melville Island for $11.4 mil

SINGAPORE (Feb 19): AusGroup, the construction and marine services provider, is acquiring an accommodation village plus facilities worth A$11.8 million ($11.4 million). The village comprises a 119-man accommodation camp, kitchen, administration building and recreational facilities at Port Melville, Melville Island in the Northern Territory of Australia, supporting the Northern Territory oil and gas industry and marine transport industry. The acquisition will be made in cash, and comes without mortgage or security interests. AusGroup’s unit, NT Port and Marine, on Monday signed a gen....

Defensive utility stocks could ride infrastructure boom

SINGAPORE (Feb 18): Utility companies, which are usually deemed to be boring defensive stocks, could turn out to be sexy growth counters. This is because the growing demand for better infrastructure and amenities on the back of the population growth and rising affluence in Asia-Pacific is leading to the implementation of new utility projects in the region. “Because of their strategic significance, utility services have traditionally been provided by the public sector. However, ballooning population growth and fiscal constraints have resulted in more of the world’s utility services to sp....

Space tech start-up Transcelestial lasers in on high-speed connectivity

SINGAPORE (Feb 18): A few months ago, inside a second-storey shophouse in Chinatown, Rohit Jha and his team fired up a PlayStation 4 set. ­Using its controllers, he virtually navigated a small toy car, manoeuvring through a track on a remote rooftop of one of the buildings in Chinatown. The tiny vehicle was monitored by a couple of cameras and linked wirelessly to the team’s office a few blocks away. Jha, CEO and co-founder of space tech start-up Transcelestial, says he often demonstrates the capabilities of the company’s product through the PlayStation setup. The effort has paid off. ....