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.
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.
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.