Stoneweg Europe Stapled Trust (SERT) Exits Slovakia for €70 Million, Completes €11.4 Million Italian Sale

Overview

Stoneweg Europe Stapled Trust (SERT), managed by Stoneweg EREIT Management Pte. Ltd. and Stoneweg EBT Management Pte. Ltd., has announced the successful divestment of its entire Slovakia logistics/light industrial property portfolio for a total property price of €71.44 million (approx. S\$107.9 million), with net cash consideration of €70.04 million—a notable 3.5% premium to the June 2025 combined net equity value of €67.68 million. In addition, SERT has completed the earlier announced sale of Cassiopea 1-2-3 in Agrate Brianza, Italy, for €11.35 million (approx. S\$17.17 million), with all proceeds received on 4 November 2025.

Key Points and Strategic Implications

• Significant Capital Recycling: The Slovakian divestment is part of SERT’s €400 million capital recycling programme, nearly completing this strategic initiative. To date, SERT has divested €411 million of non-strategic assets since 2022 at an 11% premium to valuations, demonstrating disciplined asset management and value creation, even during challenging market conditions.
• Balance Sheet Strengthening: The divestment proceeds will reduce SERT’s gearing below 40%, enhancing financial flexibility for future high-value investments and providing headroom for growth initiatives.
• Portfolio Optimization: SERT is exiting less liquid and smaller Central European assets to sharpen its focus on core Western European markets, which offer deeper liquidity and stronger tenant demand. Post-divestment, Central Europe’s portfolio weighting will decrease from 13.3% to 10.4%.
• Resilience and Investor Confidence: The successful execution of complex transactions, reinforced by Fitch’s recent upgrade of SERT’s credit rating to BBB with a stable outlook and the issuance of a €300 million 7.3-year green bond, highlights the trust’s robust financial position. SERT now faces no debt maturities until 2030, with a weighted-average debt expiry of nearly six years.
• Financial Details: Transaction costs for the Slovakia divestment are expected to be €1.10 million, including manager’s disposal fees, advisor fees, and other costs. Net proceeds will be used for immediate debt repayment (€36.9 million revolving facility), acquisitions, working capital, and potential security repurchases.
• Portfolio Changes:
  • Five Slovakian properties sold: Zilina Industrial Park, Kosice Industrial Park, Nove Mesto ONE Industrial Parks I, II, III, comprising logistics and light industrial assets with a total NLA of over 95,000 sqm. Sale prices were mostly close to or slightly below latest valuations, except Nove Mesto III, which sold at a 5.8% premium.
  • Portfolio occupancy will improve slightly from 93.5% to 93.6%, as the Slovakia portfolio had marginally lower occupancy (92.9%). WALE will remain steady at 5.1 years.
• Pro Forma Financial Effects:
  • Distributable income and DPS will be minimally affected (DPS decreases by just 0.2%, from 14.11 to 14.07 euro cents).
  • NTA per security decreases marginally from €2.03 to €2.02 due to transaction costs and fair value adjustments.
• Shareholder and Regulatory Information:
  • The transaction is considered a “discloseable transaction” under SGX rules, with relative figures of 5.9% (NAV basis), 3.3% (property income basis), and 8.0% (sales consideration vs. market cap).
  • No director or substantial shareholder has any interest, direct or indirect, in the divestment.
• Strategic Rationale:
  • The divestment is consistent with SERT’s strategy to maintain gearing within 35-40%, achieve a 70% weighting to logistics/light industrial by 2027, reduce exposure to non-core/illiquid assets, and recycle capital into redevelopment and asset enhancement projects—all aimed at providing superior risk-adjusted returns and long-term DPS and NAV growth.
• Documentation and Transparency: SPA and independent valuation reports are available for inspection at SERT’s registered office for three months from the announcement date.

Potential Price-Sensitive Factors

• Successful execution of divestment at a premium to book value and close to independent valuation may bolster investor confidence and support share price appreciation.
• Gearing reduction and improved balance sheet provide financial flexibility, de-risk the trust, and may positively affect security valuation.
• Improved portfolio occupancy and increased focus on core Western Europe markets are likely to enhance portfolio resilience and attractiveness.
• Minimal impact on DPS and NTA per security suggests limited dilution, supporting stable distributions for investors.
• Recent credit rating upgrade and bond issuance signal strong financial management and may attract new institutional investors.

About SERT and the Sponsor

SERT is a stapled trust listed on SGX, backed by SWI Group (Stoneweg, Icona Capital, and associates), holding a 28% stake. SERT’s €2.2 billion portfolio comprises over 90 predominantly freehold properties across major European cities, with a strategic focus on logistics, light industrial, and data centres. The sponsor, SWI Group, manages over €10 billion and is a leading global real assets platform, leveraging local teams in 15 European countries, the US, and Singapore.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to sell, nor a solicitation of an offer to buy any securities of Stoneweg Europe Stapled Trust (SERT). Investors are advised to review official filings and consult with financial advisors prior to making investment decisions. Past performance is not indicative of future results, and the value of investments may fall as well as rise. SERT securities are subject to risks, and there is no guarantee of principal or liquidity. This article may contain forward-looking statements subject to risks and uncertainties; actual results may differ materially.

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