SINGAPORE (Aug 24): Singapore Exchange (SGX) has issued its Eligibility-to-List (ETL) for the proposed initial public offering (IPO) of the Cromwell European Real Estate Investment Trust (CEREIT) at an estimated one billion euros ($1.6 billion).

CEREIT is a Singapore REIT with diversified portfolio of income-producing real estate assets in Europe.

Its sponsor, the ASX-listed Cromwell Property Group, says in a regulatory filing on Thursday that it intends to launch the IPO in September this year, if all conditions are met.

According to Reuters, Cromwell said it intends to hold a 10% stake in the REIT after the listing, though the size of the stake would be subject to final allocation.

The IPO is subject to market conditions, relevant regulatory and other approvals, as well as the execution of definitive agreements by relevant parties.

The SGX nod comes after REIT manager Cromwell EREIT Management last week obtained a Capital Markets Services Licence from the Monetary Authority of Singapore (MAS).

“The IPO reflects Cromwell’s stated strategy of diversifying capital sources and achieving recurring revenues from its funds management business,” Cromwell says.