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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
Published Mon, Jun 3, 2024 · 05:00 AM
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.
BT Correspondentsara h-trustcromwell e-reitara asset managementCromwell PropertyESR CaymanS-ReitsSingapore REITsSinghaiyichip eng seng
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