Blackstone makes offer for Croesus Retail Trust at S$1.17 per unit

CONFIRMING market speculation, Croesus Retail Trust (CRT) on Wednesday said that a company incorporated by funds advised by Blackstone Real Estate has made an offer for all the units in CRT.

The acquisition will be done by way of a trust scheme, with a consideration of S$1.17 in cash per unit.

This implies an equity value of about S$900.6 million for CRT.

In addition, assuming that the effective date falls on or before Oct 31, 2017, unitholders may receive distributable income of up to about S$31.3 million, representing about 4.06 Singapore cents per unit.

The scheme consideration will not be reduced by these distributions.

"The scheme represents an opportunity for unitholders to realise their investment at an attractive valuation, and at significant premiums to the historical trading prices of the units, the net asset value per unit and the net tangible asset per unit, and at an implied valuation which exceeds the latest market value of the properties of CRT as of June 30, 2016," CRT and the offeror said in a statement.

The price carries a premium of about 38 per cent to the 12-month volume weighted average price per unit.

David Lim, chairman and independent director of Croesus Retail Trust, said that he was "pleased" to receive Blackstone's proposal to privatise the trust via a trust scheme.

Christopher Heady, senior managing director and head of real estate Asia of The Blackstone Group, said: "Croesus Retail Trust has an established portfolio of quality Japanese retail assets. This transaction represents a good opportunity for Blackstone's real estate business to further expand its platform in Japan and a chance to work together with the proven management team and staff at Croesus."

CRT has requested to lift its trading halt at 12.30 pm.