Stoneweg Europe Stapled Trust Sells Rome Office Asset for €34 Million — Achieves 32% Premium Over Valuation

Key Highlights for Investors

• Divestment of Non-Core Rome Office Asset (“Maxima”) for €34.0 million (approx. S\$51.0 million), representing a 32% premium over the latest independent valuation as of June 2025.
• Transaction supports SERT’s disciplined capital recycling strategy — reducing office exposure, increasing allocation to logistics, light industrial, and data centre assets.
• Proceeds will be redeployed into opportunities with higher risk-adjusted returns, including reducing debt, supporting working capital, and new investments.
• Total divestments in 2025 now stand at €140 million, at a blended 5.6% premium to valuations. Since 2022, SERT has divested €409.1 million at an average 11% premium.
• Divestment translates to an estimated 18% uplift at the equity (NAV) level, demonstrating the NAV-accretive nature of SERT’s recycling programme.
• SERT’s securities currently trade at a ~20% discount to NAV, highlighting a potential disconnect between asset-level transactions and public market pricing.
• Portfolio rebalancing: Exposure to logistics, light industrial, and data centre assets rises to 58.7%. Italy exposure drops from 18% to 17%.
• Fitch Ratings recently upgraded SERT’s credit rating to BBB (stable outlook).
• Divestment fee of €0.17 million (0.5% of sale price) paid to the Manager.

Detailed Transaction Overview

Stoneweg Europe Stapled Trust (“SERT”), managed by Stoneweg EREIT Management Pte. Ltd. and Stoneweg EBT Management Pte. Ltd., completed the divestment of “Maxima” — a historic office building in Rome — through a simultaneous binding offer and closing. The asset, located at via Amba Aradam, was sold to SEANA S.r.l. for €34.0 million.

Maxima, constructed in the late 1950s and formerly serving as the headquarters of the national social security institution for the Lazio region, comprises 16,689 sqm of lettable area. The property was last valued by JLL at €25.7 million as of 30 June 2025. The sale price, at 32% above this valuation, reflects strong demand for redevelopment opportunities in central Rome — in this case, as a hotel project requiring new zoning and planning consents.

Management Commentary and Strategy

Simon Garing, CEO of the Manager, commented: “The €34.0 million divestment of Maxima reflects our disciplined capital recycling strategy to reduce exposure to non-core office assets while increasing allocation to logistics and light industrial properties. While the Manager had explored an office reconversion strategy, the asset ultimately delivered superior value as a hotel redevelopment, supported by its prime central Rome location. The transaction was completed at €8.3 million, or 32%, above the June 2025 valuation, allowing SERT to crystallise a significant portion of the expected redevelopment upside without committing development capital to a complex, heritage-listed asset. Proceeds from the sale will be redeployed into opportunities offering higher risk-adjusted returns across the portfolio.”

Portfolio Impact & Financial Implications

• SERT’s total 2025 divestments: €140 million at 5.6% blended premium.
• Since 2022: €409.1 million divested at an 11% average premium, in line with the €400 million divestment plan set in response to rising interest rates.
• With c.40% net gearing on average, the 11% premium achieved on asset divestments since 2022 translates into an ~18% uplift at the equity (NAV) level.
• SERT securities are trading at ~20% discount to NAV, highlighting a potential value opportunity for investors if the market re-rates the trust to better reflect asset-level values.
• Portfolio allocation: Logistics, light industrial, and data centre assets now constitute 58.7% of total portfolio post-divestment; Italy exposure reduces to 17%.
• Western Europe and Nordics now represent 89.4% of the portfolio after Slovakia portfolio divestment.
• Net gearing is expected to remain within the 35–40% target range, consistent with the recent Fitch Ratings upgrade to BBB (stable outlook).

Use of Proceeds

The net proceeds from the divestment will be utilised to reduce the revolving credit facility, support general working capital, and/or reinvest in new opportunities offering higher risk-adjusted returns.

Divestment Fee

A divestment fee of €0.17 million (0.5% of the sale consideration) is payable to the Manager, in accordance with the SERT Trust Deed.

Governance and Compliance

• The transaction does not constitute an “interested person transaction” under the SGX Listing Manual. None of the directors or controlling unitholders of the Manager has any direct or indirect interest in the transaction, other than through their holdings in SERT securities.

About Stoneweg Europe Stapled Trust (SERT)

SERT (formerly Cromwell European REIT) is a stapled group comprising the Stoneweg European Real Estate Investment Trust and Stoneweg European Business Trust. Its principal mandate is to invest in income-producing commercial real estate across Europe with a focus on Western Europe and the logistics, light industrial, and office sectors. The current portfolio, valued at €2.2 billion, includes over 90 predominant freehold properties in key European gateway cities, serving more than 700 tenant-customers and spanning 1.6 million sqm of lettable area.

SERT is listed on the SGX (SET in Euro, SEB in SGD), managed by Stoneweg EREIT Management and Stoneweg EBT Management, and sponsored by SWI Group, which holds a 28% stake in SERT’s stapled securities.

Potential Share Price Impact & Investor Considerations

• The significant premium achieved on the divestment and the NAV-accretive capital recycling programme may be viewed positively by investors, especially given the current 20% discount to NAV in the public market — potentially a share price catalyst if the market re-rates SERT in line with asset-level values.
• The increased portfolio weighting towards logistics and data centre assets aligns with investor demand for resilient, future-proof real estate sectors, which may enhance SERT’s valuation over time.
• Recent credit rating upgrade to BBB (stable) by Fitch supports confidence in SERT’s capital management and financial stability.
• Continued execution of the announced divestment programme — including further asset sales at premiums to valuation — could further support the share price and investor returns.

Disclaimer: This article is for information purposes only and does not constitute an offer, invitation, or solicitation to purchase or sell securities of Stoneweg Europe Stapled Trust (SERT) in Singapore or any other jurisdiction. The value of stapled securities and the income derived from them may fall as well as rise. Past performance is not indicative of future results. Investors should seek professional advice before making investment decisions. The issuer, its manager, sponsor, or affiliates do not guarantee returns or the principal amount invested. Forward-looking statements involve risks and uncertainties — actual results may differ materially from those expressed. This article does not take into account your personal investment objectives, financial situation, or needs.

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