ARA calls Cromwell ‘undisciplined’ amid takeover battle and other APAC REIT news

ARA Asset Management has accused the board and management team of ASX-listed Cromwell Property Group (CMW) of “erratic and undisciplined” behaviour in a bidder’s statement related to its takeover plans of Cromwell. 

ARA, which already owns a 24% stake in the company through subsidiaries, is trying to acquire 29% of Cromwell shares that it doesn’t already own. 

The Cromwell Property Group board has recommended that shareholders reject ARA Asset Management’s takeover bid that was launched last month. 

Cromwell told shareholders that the offer price of A$0.88125 per security represented a 15.3% discount to Cromwell’s NTA of A$1.04 per unit as at the end of 2019.

Cromwell also said ARA’s draft bidder’s statement contained misleading statements and material omissions, particularly in relation to ARA’s intentions for the future of the business. 

In the bidder’s statement, ARA said they had become “increasingly concerned with the poor operational performance, increased complexity, erratic strategy, overall governance and risk management protocols at Cromwell”.

Cromwell Property shares closed 0.56% higher at A$0.89. 

The S&P/ASX 200 A-REIT index rose 1.91% to 1,238.50, while the S&P/ASX 200 index jumped 2.58% to 6,156.30.

Hong Kong 

Prosperity REIT (808) has warned shareholders that it expects to record a net loss for the six months to end-June 2020 after the value of its portfolio declined about 5%. 

The REIT said the value of its portfolio declined by HK$0.56bn to HK$10.57bn during the first half of 2020, however it expects no effect on the operating cash flow and the income available for distribution to unitholders.

Shares in Prosperity REIT closed 0.86% lower at HK$2.30. 

The Hang Seng REIT index slipped 0.60% to 5,486.72, however the Hang Seng index bounced 2.31% to 25,635.66.

Japan

The Tokyo Stock Exchange REIT index closed 0.05% lower at 1,657.34, and the Nikkei 225 index edged 0.73% higher to 22,884.22.

Singapore  

The FTSE ST Real Estate Investment Trusts index climbed 1.19% to 840.15, as the Straits Times Index increased 0.5% to 2,629.45.

Learn more about Asia Pacific REITs:

REITS in AustraliaREITs in Thailand
REITs in JapanREITs in Taiwan
REITs in SingaporeREITs in Korea
REITs in Hong KongREITs in New Zealand
REITs in MalaysiaREITs in India
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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.