Cromwell Property plans to float European vehicle in Singapore
Brisbane headquartered Cromwell Property Group has indicated that it plans to float its European properties on the Singapore stock exchange, but speculation are emerging about the possibility that Chief Executive Paul Weightman recut the deal. The company desires to change the size of its IPO, leaving out certain assets while keeping cornerstone investors still locked into the investment. This would be Singapore’s first euro-denominated real estate trust and it will be competing with similar funds with US interest.
Cromwell launched a roadshow in September last month to raise close to $2 billion to back a Singapore listing of its European office, industrial and retail properties that were part of the Valad Europe platform that it acquired earlier.
Analysts have linked plans by Cromwell to sell its 9.83% stake in its former takeover target Investa Office Fund last week as a move to secure equity to bolster its prospects of successfully listing its Singapore vehicle. There have also been suggestions that the company was considering bringing in new banks for the IPO. Analysts are pointing to Goldman Sachs as the cause for the last IPO attempt faltering because it withdrew its support at the 11th hour. However, Cromwell has denied this thought. It is believed that UBS, DBS, Daiwa and CLSA and Goldman Sachs were jointly working during the company’s first attempt at bringing out this IPO.