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New sponsors of Ara H-Trust, Cromwell E-Reit unlikely to quickly lift their depressed valuations

Lack of upside for minorities may further erode confidence in the external-manager model, and fuel calls for manager internalisation initiatives

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Ben Paul

Ben Paul

Published Mon, Jun 3, 2024 · 05:00 AM
    • Cromwell E-Reit, like ARA H-Trust, owns faraway assets and is laden with debt.
    • Cromwell E-Reit, like ARA H-Trust, owns faraway assets and is laden with debt. PHOTO: BT FILE

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    INVESTORS may have mixed feelings about the recently announced sale of ARA US Hospitality Trust (ARA H-Trust) and Cromwell European Real Estate Investment Trust (Cromwell E-Reit) by their respective sponsor groups.

    On the one hand, the change in control of these property trusts could mark the beginning of a new phase of their growth and development.

    On the other hand, it seems unfair that the former sponsors have been able to cash out after a protracted period of underperformance by selling the external managers of these trusts.

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    BT Correspondentsara h-trustcromwell e-reitara asset managementCromwell PropertyESR CaymanS-ReitsSingapore REITsSinghaiyichip eng seng

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