Stoneweg European Reit (formerly known as Cromwell European Reit)

[Shrivathsa]

Interestingly, another European REIT is shooting up. My guess is it is due to a combination of interest rate cuts by ECB and the impending conversion to a Business Trust being the catalyst.

https://links.sgx.com/FileOpen/Stoneweg%...eID=847967

Am curious on whether if one has this under CPF Investment Scheme, what happens to those units? From memory, CPF IS does not allow Business Trusts, or would this be exempt since it is a conversion from REIT to Business Trust?

[ghchua]

Am curious on whether if one has this under CPF Investment Scheme, what happens to those units? From memory, CPF IS does not allow Business Trusts, or would this be exempt since it is a conversion from REIT to Business Trust?

Hi Shrivathsa,

No. It will not be exempted. Business Trust as an asset class is not included under the CPF Investment Scheme even when it was converted from a REIT. This had been seen in a previous case study from Capitaland Ascott Trust, when it was excluded from CPF Investment once it was converted from a REIT to a stapled security (which includes a BT component).

Your existing units will not be affected. They will remain in your CPF Investment Account. You can choose to hold or sell them in future.

However, you will not be able to add onto your existing holdings using CPF funds. Which means, if there is a rights issue, you will still be entitled to it but you will need to use cash to apply and the new rights units have to be transferred out to your CDP account after successful application.

PS: Moderator, could you please help to change the name of this topic to reflect the new name of the REIT? Thanks.

[weijian]

This is one of the 1st related party transaction after the new manager took over. In recent years, rather than acquiring mature assets, many REITs/Trusts have gone up the value chain by providing capital for development. Whether development or holding a mature asset, both are generally capital intensive. If it make sense to participate in the development, then the manager adds value (to OPMIs) by making the right decision to have the REIT participate in development.

Stoneweg European Business Trust invests 50 million euros in fund with early-stage data centre sites

[SINGAPORE] Stoneweg European Business Trust : SET 0% announced on Tuesday (Jun 24) that it has made a 50 million euros (S$74.4 million) investment in the Stoneweg Icona data-centre fund.

The stake of the trust in the fund is expected to range from four to eight per cent depending on the final quantum of investment made by the other investors.

https://www.businesstimes.com.sg/compani...ntre-sites

[Shrivathsa]

Activum sold a 17.65 sqm land for 11 million Euros in July 2024 in Spain. https://www.datacenterdynamics.com/en/ne...velopment/

Icona acquired 250K+ sqm land in May 2024 in Spain, the value was not disclosed.  Icona Capital Acquires Land for Data Centre Expansion in Europe - Icona Capital

Assuming that a 250K+ sqm land is pro-rata costed, it would come to a cost of 155.8 million Euros.

Even with say 20% appreciation in a year the value of land is say 187 Million Euro. For 55 Million Euro, one should ideally get 29% stake.

To get 4%-8% stake, at a cursory glance, the investment cost looks to be too high or maybe I am calculating costs too simplistically.