Is Stoneweg Europe Stapled Trust’s manager-internalisation deal the key to reviving S-Reits?
Some view manager-internalisation as a ‘nuclear option’, but Sert is demonstrating that it is also a constructive growth-oriented strategy
[SINGAPORE] When Stoneweg Europe Stapled Trust (Sert) flagged in August that the internalisation of its managers was on the cards, this column warned that the move might alienate minority investors and do little to boost the market valuation of its stapled securities.
Sert is not just acquiring the managers of its own assets, though. On Sep 28, it was revealed that Sert plans to acquire its sponsor’s pan-European logistics and light-industrial platform – which manages Sert’s 2.3 billion euro (US$2.6 billion) portfolio, as well as a further 820 million euros worth of third-party assets across 11 mandates.
Sert’s managers were circumspect about the significance of these third-party mandates in their comments on the deal last week. They said the mandates are not a standalone growth business but a means for its local teams across Europe to maintain market relationships and create potential future co-investment and acquisition opportunities for Sert.
