Cromwell European REIT fixes price for placement of new units amid strong demand

Euro coinsPhoto by Leslie Shaffer

Cromwell European REIT set the price for the placement of new units at 0.46 euro (S$0.71 or US$0.52), in an offering that was “considerably oversubscribed,” triggering the exercise of the upsize option, the REIT said in a filing to SGX Friday.

“The private placement was well-supported by existing unitholders and new investors, including regional and global long-only institutional investors, property specialist funds and private wealth clients,” the filing said.

Due to the exercise of the upsize option, an additional 50 million euros of gross proceeds were raised, bringing the total to 150 million euros (S$230.48 million or US$169.89 million), the REIT said.

The 0.46 euro placement price was a 9.6 percent discount to the volume weighted average price of 0.5091 euro per unit for trades on SGX Wednesday, the last day of trade before the units were halted, the filing said.

A total of 326.09 million new units will be issued, Cromwell European REIT said.

The pricing was at the bottom of the 0.46-0.47 euro range, the filing said.

Around 140.9 million euros of the proceeds will be used to partially fund the acquisition of three properties in France and three in Poland.

The remainder was earmarked to pay the estimated fees and expenses for the acquisition and the private placement, as well as for general corporate and/or working capital purposes, the REIT said.

The new units are expected to begin trading on 2 July. Credit Suisse (Singapore) and UBS’s Singapore branch were the joint lead managers and underwriters, the filing said.

Cromwell European REIT requested the trading halt on its units be lifted on Monday.

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