Cromwell European REIT proposes rights issue to raise around 224 million euros to fund new acquisitions

Euro coinsPhoto by Leslie Shaffer

Cromwell European REIT’s manager said late on Tuesday that it proposed a rights issue to raise gross proceeds of around 224.1 million euros to partially finance its acquisition of properties in Europe.

The REIT’s manager proposed an underwritten and renounceable rights issue of 600.83 million new units in Cromwell European REIT on a 38 for 100 existing units held basis, it said in a filing to SGX late on Tuesday.

The issue price is at 0.373 euro per rights unit, it said, noting that was a discount of around 31.6 percent to the closing price of 0.545 euro per unit on Tuesday, the last trading day before the rights issue was announced.

Cromwell EREIT Management, the REIT’s manager, noted that it proposed acquiring 16 properties located in the Netherlands, Finland and Poland as well as two office properties in the Italian cities of Bari and Genova, four logistics properties and one retail big box located in Greater Paris, France, and an earlier announced proposed acquisition of a property in Jervis, Ivrea, Italy.

The total purchase price of the 16 new properties was 312.5 million euros, the price of the two Italian properties was 37.5 million euros and the price of the five French properties was 34.4 million euros, it said.

The remainder of the purchase consideration will be funded via debt, it said.

After the acquisitions, Cromwell EREIT will own 98 properties, it said.

Cromwell Singapore Holdings, which holds an around 35.3 percent interest in Cromwell European REIT, has irrevocably undertaken it will vote in favor of the rights issue at the extraordinary general meeting and it will subscribe for its full allotment of rights units, the filing said.

UBS AG’s Singapore branch, DBS Bank, Morgan Stanley Asia (Singapore) and Daiwa Capital Markets were appointed joint global co-ordinators and bookrunners and joint underwriters for the rights issue, it said.

The extraordinary general meeting was set for 15 November, it said.

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