SINGAPORE (June 21): Cromwell EREIT Management, the manager of Cromwell European Real Estate Investment Trust (CEREIT) the Private Placement launched on Friday was closed on the same day after successfully raising gross proceeds of €150.0 million ($231.4 million).
See: Cromwell European REIT raises €150 mil in private placement after exercising upsize option
See: Cromwell European REIT buys 6 properties in France, Poland for $378 mil; launches placement
Cromwell EREIT Management says a total of some 326.1 million new units will be issued at €0.46 each, as agreed between the manager and the joint lead managers and underwriters following an accelerated book-building process.
The manager says the private placement was “considerably oversubscribed, and well-supported by existing unitholders and new investors, including regional and global long-only institutional investors, property specialist funds and private wealth clients”, which also allowed the manager to exercise the placement upsize in full.
The issue price represents a 9.6% to the volume weighted average price (VWAP) of €0.5091 per unit for trades in the units done on the SGX (CNNU.SI which is traded in €) for the preceding market day on June 20 up to the time the placement agreement was signed on June 21.
Approximately €140.9 million, or 93.9%, of the gross proceeds will be used to partially fund the acquisition of six properties located in France and Poland while about €9.1 million will be used to pay the estimated fees and expenses.
Simon Garing, the manager’s CEO, says, “The acquisitions are expected to be DPU-accretive and to strengthen CEREIT’s portfolio. Capitalising on the low interest rate environment in Europe as well as the sponsor’s pipeline sourcing and execution capabilities, we have successfully negotiated deals to buy the new properties below replacement costs and at attractive yields.”
