Cromwell European Real Estate Investment Trust’s Initial Public Offering: What Investors Need to Know

Cromwell European Real Estate Investment Trust (REIT) has filed its initial public offering (IPO) prospectus, after putting a stop on its original plan two months ago.

Here are six things investors should know about the potential newest kid on the block.

1. The REIT is set to become Singapore’s first REIT with a diversified pan-European portfolio. Its sponsor is Australia-listed global real estate manager, Cromwell Property Group (ASX: CMW).

2. The IPO portfolio is valued at around €1.35 billion and will include 74 properties across five countries in Europe (Denmark, France, Germany, Italy and the Netherlands) with a focus on office and light industrial/logistics sectors.

3. A total of 428.5 million units will be on offer, which consists of a placement of 392.2 million units to institutional investors and 36.4 million units to the Singapore public, at €0.55 per unit.

4. The listing will raise total proceeds of €865.7 million. Cromwell European REIT plans to mainly use the proceeds to acquire 60 properties in Denmark, France, Germany and the Netherlands from funds managed by Cromwell Property Group, and 14 Italian properties from third parties.

5. The projected distribution yield for 2018 is 7.8% and for 2019 is 8%. Based on the offer price of €0.55 per unit and a net asset value per unit of €0.53, the price-to-book ratio stands at 1.04.

6. The IPO is open from 22 November 2017 (9:00 pm) to 28 November 2017 (12:00 pm). Trading is expected to commence on 30 November 2017 (2:00 pm).

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.