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CEReit's stabilising manager behind a third of volume since IPO

THE stabilising manager for Cromwell European Reit (CEReit) has bought 27.89 million units from the open market since the trust's Nov 30 initial public offering (IPO), accounting for one third of the counter's trading volume since listing and helping to support its market price.

The latest round of purchases on Wednesday comprised 1.795 million units bought between 0.54 and 0.55 euro apiece, according to filings with the Singapore Exchange. Those units represented 58.4 per cent of the total units traded on Wednesday.

The counter was trading at 0.55 euro as at noon on Thursday.

The mainboard-listed stock made its debut at 2pm on Nov 30, with an IPO price of 0.55 euro per unit.

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UBS, the stabilising manager, has bought 27.89 million units since the counter was listed, accounting for 33.3 per cent of the total traded volume over those 10 sessions. The units were bought between 0.535 and 0.55 euro each.

The daily purchase by UBS has ranged from 705,000 units to 9.47 million units, with a median of 1.72 million units per day. Compared to the counter's daily volume, the stabilising transactions have accounted for 7.6 per cent to 58.4 per cent of each day's total volume.

UBS's mandate allows it to buy up to 45.454 million units for stabilising action. UBS has used up 61.4 per cent of that allowance so far, leaving another 17.6 million units that can be purchased.

CEReit's IPO portfolio consists of 74 properties in or close to major gateway cities in Denmark, France, Germany, Italy, as well as the Netherlands, with a focus on the office and light industrial/logistics sectors.