Stoneweg Europe Stapled Trust (SERT) Divests Polish Office Asset in Strategic Portfolio Shift

Key Developments and Highlights for Investors

• Divestment of Riverside Park, Warsaw: SERT, through its indirect wholly-owned subsidiary, has entered into a binding agreement to sell the Riverside Park office asset in Warsaw, Poland for €22.5 million (approximately S\$33.6 million).
• Premium to Valuation: The sale price was agreed at a modest premium to the latest independent valuation of €21.4 million (as at 31 December 2025), underscoring effective asset management and positive market demand.
• Completion Timeline and Conditions: The divestment is subject to the City of Warsaw’s pre-emption rights, expiring in April 2025, and other customary conditions. Completion is expected in 2Q 2026.
• Strategic Portfolio Optimisation: This divestment is part of SERT’s portfolio optimisation strategy, aiming to reduce office exposure and increase allocations to logistics, light industrial, and data centres.
• Capital Recycling and Proceeds: Net proceeds will be earmarked for reinvestment aligned with SERT’s strategic sector targets or for general working capital. A divestment fee of €0.1 million (0.5% of the sale price) is payable to the Managers in accordance with the Trust Deed.
• Shift in Portfolio Composition: After this divestment, SERT’s Polish exposure will reduce to 6.0%, with three A-grade assets remaining (including Motorola’s Innovation Hub). The weighting to logistics, light industrial, and data centres will rise to 60%, with Western Europe and the Nordics now exceeding 90% of portfolio value.
• No Interested Person Transaction: The transaction does not constitute an interested person transaction, and no director or controlling security holder of the Managers has any interest in the sale, other than via their security holdings in SERT.

Details on Riverside Park Asset and Buyer

• Asset Description: Riverside Park is a multi-tenant office building completed in 2005, offering approximately 12,631 sqm of net lettable area, and located just 2.5km from Warsaw’s city centre.
• Buyer Profile: The asset is being sold to a Polish private limited company (Sp. z o.o.) operating an oncology hospital in Warsaw, indicating continued institutional investor interest in the Warsaw office market.

Strategic Rationale and Forward-Looking Implications

• Reinforcing Sector Leadership: The divestment is in line with SERT’s strategy to grow its logistics, light industrial, and data centre exposure to over 70% by 2027, positioning the group for long-term, risk-adjusted returns.
• Support for Distributions and NAV: The Manager emphasised that disciplined asset recycling is intended to sustain stable distributions, drive long-term NAV per security growth, and maintain a resilient balance sheet.
• Potential Impact on Share Price: The successful sale at a premium, further sector concentration, and visible capital recycling discipline can be considered price-sensitive and may positively influence SERT’s share value as they highlight active management, strategic execution, and a clear growth path.
• Exposure to Data Centre Growth: SERT remains an early investor in the Sponsor’s data centre development platform, AiOnX, which is expected to drive future valuation and earnings upside, subject to execution and market conditions.

SERT Portfolio & Sponsor Overview

• Portfolio: SERT’s portfolio is valued at approximately €2.2 billion, comprising over 90 predominantly freehold properties across nine European countries, with more than 1.6 million sqm of lettable area and over 700 tenants.
• Sponsor Strength: SERT’s sponsor, SWI Group (listed on Euronext Amsterdam as SWICH), is a global investment conglomerate holding a 28% stake in SERT. SWI Group manages over €11 billion of assets and operates in 17 countries, providing strong institutional backing and operational expertise.

Important Information for Shareholders

• Transaction Completion Risk: The sale is subject to Warsaw’s pre-emption rights (expiring April 2025) and customary completion conditions, with final completion expected in 2Q 2026. Any changes or delays to these conditions may affect the transaction and, consequently, SERT’s portfolio and financial outlook.
• Market Outlook and Strategy: SERT’s clear commitment to sector-leading exposure and capital recycling enhances its investment appeal, but investors should monitor any macroeconomic or regulatory changes in European real estate, especially given the portfolio’s high weighting to logistics and data centres.
• Forward-Looking Statements: The Manager notes that actual results may differ materially from projections due to risks and uncertainties.

Conclusion

The divestment of Riverside Park marks a significant milestone in SERT’s ongoing portfolio optimisation, supporting its ambition to lead in the European logistics and data centre sectors. The sale at a premium to valuation, disciplined reinvestment strategy, and increased sector concentration are all developments that can potentially impact SERT’s share value and should be closely monitored by investors.

Disclaimer: This summary is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors are advised to review official disclosures and consult their own advisors before making investment decisions. The value of investments may fall as well as rise, and past performance is not indicative of future results. All forward-looking statements are subject to risks and uncertainties.

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