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Cromwell European Reit sets IPO for SGX listing

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

The real estate investment trust (Reit), which draws rental income from 81 properties in six European countries, expects to raise gross proceeds of up to €1.25 billion (S$2 billion) by issuing units at between 55 euro cents and 57 euro cents a unit.

Based on the initial public offering (IPO) price range, the Reit is forecasting a distribution yield of 7.5 to 7.7 per cent for next year. The offer size of 1.58 billion units consists of 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 Sept 21 and close at noon on Sept 26, based on its indicative timetable.

Cromwell European Reit will have a market cap of between €1.2 billion to €1.25 billion 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.

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 STRAITS TIMES

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