Cromwell European REIT - RHB Invest 2024-05-27: Minimal Impact From The Change Of Sponsor

• Cromwell European REIT's announcement of a new sponsor and major shareholder is broadly neutral and should have minimal impact to its strategy and operations. The substantial stake acquired at a premium to the current traded price indicates good value in the REIT seen by its new sponsor.
• - Read this at SGinvestors.io -

Stoneweg emerges as the new sponsor & substantial shareholder

• Stoneweg emerges as the new sponsor and substantial shareholder for Cromwell European REIT by way of acquiring Australian listed Cromwell Property Group’s (CMW AU) – Cromwell European REIT's current sponsors – entire European platform for EUR280m (~S$ 412m).
• - Read this at SGinvestors.io -
• The move does not come as a surprise to us and is mainly on the back of Cromwell’s plan to lighten its balance sheet and focus on the core Australian real estate market. The sale was done via a bidding process (link) with Stoneweg emerging as the winner among several bidders.
• The transaction is subject to regulatory approvals and is expected to be completed by 3Q24.

Stoneweg is a Swiss HQ real estate manager & advisory group

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-05-27 SGinvestors.io

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