A large new real estate investment trust (Reit) appears headed to Singapore - with an initial public offering (IPO) set to raise about €1 billion (S$1.6 billion).
Australian-listed Cromwell Property Group has got the go-ahead from the Singapore Exchange to lodge a prospectus for the IPO of Cromwell European Real Estate Investment Trust (CEReit).
The SGX has issued its eligibility-to-list for the proposed IPO, Cromwell said yesterday .
If all goes according to plan, the prospectus will be lodged early next month and the IPO will occur at the end of next month.
Market sources said CEReit will have more than 70 assets across Europe and target a distribution yield above 6 per cent.
As reported earlier by The Straits Times, this Reit would comprise European properties with a focus on Europe's smaller cities. Cromwell EReit Management, the Reit manager, received a Capital Markets Services Licence from the Monetary Authority of Singapore last week.
Cromwell intends to hold a sponsor stake of about 10 per cent of CEReit, subject to final allocations.
People are excited about Europe. With recovery under way in Europe, people see the opportunity to access sustainable yield with growth as very compelling.
CROMWELL PROPERTY GROUP CHIEF PAUL WEIGHTMAN
Cromwell Property Group chief Paul Weightman told The Straits Times in May: "People are excited about Europe. With recovery under way in Europe, people see the opportunity to access sustainable yield with growth as very compelling."
The Australian-listed property investor and fund manager manages €4 billion worth of assets across 24 separate funds in Europe, which tend to be invested in secondary cities.
Mr Philip Levinson, the chief executive of the Reit manager, was the former chief executive of Cambridge Industrial Trust Management.
Cromwell Property Group's stapled securties closed unchanged at 93.5 Australian cents yesterday on the Australian bourse.