Stoneweg Europe Stapled Trust Announces €19 Million Divestments in Italy and Poland: Strategic Shift Accelerates Towards Logistics and Data Centres

Key Highlights

• SERT divests non-core Agrate Brianza office asset in Italy for €11.35 million, at a 2.9% premium to valuation.
• Completion of Poland’s Arkońska Business Park sale at €7.8 million.
• Divestments mark execution of €303.7 million asset sales since 2022, at a 12.3% premium to last independent valuations.
• Rebalancing of SERT’s portfolio towards logistics, light industrial and data centres, in line with medium-term strategy.
• Proceeds to be used for debt reduction and working capital, with a 0.5% divestment fee payable to managers.
• No interested person transaction; no directors or controlling unitholder conflict.
• Portfolio currently valued at €2.3 billion, with a shift aimed at exceeding a majority weighting in logistics, light industrial and data centres.

Detailed Analysis for Investors

Stoneweg Europe Stapled Trust (“SERT”) has taken a decisive step in reshaping its portfolio by announcing the divestment of two non-core office assets, with a total transaction value of approximately €19.15 million. This strategic move underscores management’s intent to accelerate the Trust’s transformation towards higher-growth, resilient sectors such as logistics and data centres.

Divestment of Cassiopea 1-2-3, Agrate Brianza, Italy

SERT, managed by Stoneweg EREIT Management and Stoneweg EBT Management, has entered into a binding agreement with Finviar S.r.l. for the sale of Cassiopea 1-2-3 in Agrate Brianza, Italy, for €11.35 million (approx. S\$17.17 million). Notably, this transaction was struck at a 2.9% premium to the asset’s independent valuation of €11.03 million as at 30 June 2025. The asset consists of three interconnected office buildings with a total lettable area of 11,503 sqm. Completion is expected in Q4 2025, subject to execution of the notarial deed and the customary issuance of a fire prevention certificate by the Italian Fire Brigade Command.

Completion of Arkońska Business Park, Poland Divestment

The Trust also completed the previously announced sale of Arkońska Business Park in Poland, closing at €7.8 million (approx. S\$11.8 million) on 17 September 2025. The divestment is part of SERT’s ongoing strategy to reduce exposure to B/C-grade office assets and non-core markets.

Strategic Rationale and Portfolio Impact

Since early 2022, SERT has executed €303.7 million of divestments in non-strategic assets, achieving an impressive aggregate 12.3% premium to the latest independent valuations. The proceeds from these sales have been redeployed into higher-value strategies, most notably a €50 million allocation to the AiOnX data centre development fund.

Management, led by CEO Simon Garing, emphasized that these actions are “consistent with SERT’s strategy to reduce exposure to non-core markets and B/C grade office assets.” The Trust is actively rebalancing its €2.3 billion portfolio, which spans over 100 properties across major European gateway cities, towards logistics, light industrial, and data centres. Currently, 87% of the portfolio is in Western Europe, with 59% in logistics, light industrial, and data centre sectors. The medium-term goal is to increase this sector exposure to a “vast majority weighting.”

These divestments not only enhance portfolio quality but also support the Trust’s effort to maintain gearing within the medium-term target range of 35–40%, a critical factor for financial stability in a rising interest rate environment.

Use of Proceeds & Financial Implications

• Proceeds from the Agrate sale will be used to reduce the revolving credit facility and/or for general working capital purposes.
• A divestment fee of €0.06 million (0.5% of sale consideration) will be paid to the Managers, in accordance with the Trust Deed.
• The transactions do not constitute interested person transactions under the SGX Listing Manual, and there is no director or controlling unitholder conflict.

About SERT and Its Sponsor

SERT, formerly Cromwell European REIT, is a stapled group listed on the SGX, with Stoneweg, Icona Capital and their affiliates as sponsors, collectively holding 28% of SERT’s stapled securities. SWI Group, the sponsor, manages over €10 billion of assets and has a significant presence across 15 European countries, the US, and Singapore, with more than 300 employees and 25 offices worldwide. The listed mandates, including SERT and Varia Properties US, represent about 40% of SWI’s assets under management.

Potential Price-Sensitive Factors for Shareholders

• Premium Achieved: Both divestments were completed at or above independent valuation, demonstrating strong asset management and market discipline.
• Portfolio Rebalancing: The accelerated shift to logistics and data centres may position SERT for higher growth and resilience, especially as office markets in Europe face cyclical headwinds.
• Gearing Management: Use of proceeds for debt reduction supports balance sheet strength and could help preserve distributions to unitholders.
• Fee Structure: The 0.5% divestment fee is within industry norms, but investors should monitor cumulative fee impact as the Trust continues its asset rotation strategy.
• Execution Risk: The Italian transaction is subject to regulatory and legal conditions; any delay or failure to complete could impact near-term financials.

Conclusion

The latest divestments by Stoneweg Europe Stapled Trust mark a significant milestone in its strategic transformation. The Trust’s ability to sell assets at a premium in challenging market conditions, and its firm focus on logistics and data centre investments, could enhance medium- to long-term value for unitholders. Investors should watch closely for updates on the completion of the Agrate transaction and ongoing capital deployment into higher-growth sectors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy any securities. Investments in stapled securities carry risks, including the possible loss of principal. Past performance is not indicative of future results. Investors are advised to consult their own financial advisors and read official disclosures before making any investment decisions.

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