Cromwell board to reject ARA takeover offer and more APAC REIT news

Australia

The board of Cromwell Property Group (CMW) intends to reject ARA Asset Management’s takeover bid to acquire 29% of shares that it didn’t already own. 

ARA, which already owns a 24% stake in the company through subsidiaries, is offering A$0.90 per share, a 3.4% premium to the last close on June 22. 

However, Cromwell said ARA’s offer was a discount of at least 10% to Cromwell’s estimated pro forma NTA per stapled security as at June 30, 2020 and ignored the value associated with Cromwell’s funds management business.

“The Cromwell Board considers the proportional offer to be an opportunistic attempt to gain control of Cromwell without offering to acquire all stapled securities or paying an appropriate control premium to Cromwell securityholders,” the company said in a statement. Cromwell shares were flat. 

A-REITs edged higher again today, with the S&P/ASX 200 A-REIT index growing 0.56% to 1,280.70, and the S&P/ASX 200 index increasing 0.19% to 5,965.70.

Japan

J-REITs rose slightly, with the Tokyo Stock Exchange REIT index up 0.88% to 1,706.71, while the Nikkei 225 Index closed 0.07% lower at 22,534.32.

Nippon Accommodations Fund Inc. (3226) will acquire a 70% stake in the Park Cube Oimachi Residence in Tokyo from ITOCHU Property Development for about JPY 4.1bn, the company announced. Nippon Accommodation Fund stocks rose 0.63% to JPY 644,000.

Nippon Building Fund Inc. (8951) secured a seven-year, JPY 2bn loan from the Hachijuni Bank at a 0.27% interest rate to refinance existing long-term borrowings, according to a statement. Nippon Building Fund shares increased 0.77% to JPY 653,000.

Orix JREIT Inc. (8954) shares jumped 4.16% to JPY 152,800 as one of the biggest gainers of the day, while SOSiLA Logistics REIT Inc. (2979) stocks retreated 1.61% to JPY 128,200. 

Singapore

Overall, S-REITs finished where they started, with the FTSE ST Real Estate Investment Trusts index finishing trading down 0.01% at 833.35, and the Straits Times Index rising 0.24% to 2,628.62.

Mapletree Industrial Trust (ME8U) was among the top performing S-REIT stocks, rising 4.58% to S$2.97, after announcing plans to buy the 60% remaining interest in 14 data centres in the US for US$494m.

At the other end, Lendlease Global REIT (JYEU) shares dipped 3.50% to S$0.69.

Hong Kong 

HK REITs were also flat overall, with the Hang Seng REIT Index closing 0.05% lower at 5,593.22, and the Hang Seng index slipping 0.50% to 24,781.58. 

The biggest swings of the day were Spring REIT (1426) shares,which slipped 1.19% to HK$2.50, and Yuexiu REIT (405) stocks, which gained 0.28% to HK$3.62.

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.