Cromwell Property Group raises €865.7m for IPO

Cromwell Property Group announced the successful initial public offering (IPO) of the Cromwell European Real Estate Investment Trust (CEREIT) after CEREIT debuted on the main board of the Singapore Exchange Securities Trading Limited (SGX-ST).

“The successful IPO of CEREIT is an innovative and transformative deal,” said Paul Weightman, Cromwell CEO . “It’s the first Euro denominated REIT on the SGX-ST and the largest REIT IPO in Asia since 2013 by market capitalization.”

“CEREIT also secures approximately one third of our existing European assets under management (AUM) with longer term capital, and allows us to grow our platform in Italy, the Eurozone’s third largest economy, with an additional €400 million in assets under management,” added Weightman .

Cromwell’s wholly-owned subsidiary Cromwell EREIT Management Pte. Ltd., the manager of CEREIT, raised gross proceeds of €865.7 million ($1.03 billion). Cromwell’s stake of 35.8 percent, as at the listing date, and assuming the over-allotment option is not exercised, is valued at approximately €310 million ($370 million).

CEREIT’s cornerstone investors include Cerberus Singapore, Hillsboro Capital, Ltd. and Mr. Gordon Tang and Mrs. Celine Tang.

Hillsboro Capital, Ltd. is a private investment holding company of Dr. Andrew Tan and his family. Dr. Tan is the chairman and CEO of Alliance Global Group Inc., one of the leading listed conglomerates in the Philippines with interests in property development, food and beverage manufacture and distribution, quick-service restaurants and integrated tourism development businesses.  Mr. Tang is a non-executive director of SingHaiyi Group, which is listed on the main Board of the SGX-ST and specializes in property development, real estate investment, real estate co-investing and real estate management services. Mrs. Tang is the group managing director of SingHaiyi Group Limited.