Blackstone gets SGX-ST nod for trust scheme to acquire Japan-focused Croesus Retail Trust

Photo: Bloomberg

Blackstone Group has approval in principle (AIP) from Singapore Exchange Securities Trading Limited (SGX-ST) for the trust scheme for the acquisition of Croesus Retail Trust (CRT) , a move that will see the private equity major acquire the Japan-focused property operator via the scheme for $649.8 million.

The private equity firm  had made an offer in June to acquire all units in Croesus through a trust scheme, with a consideration of S$1.17 in cash per unit.

“SGX-ST has, on 16 August 2017, advised that it has no objection to the Trustee-Manager’s application to delist and remove CRT from the Official List of the SGX-ST,” CRT said in an announcement on Thursday.

The de-listing will take place based on SGX-ST’s listing requirements and approval of the scheme by a majority in number of unitholders present and voting and approval of the High Court of the Republic of Singapore being obtained for the Scheme.

The buyout deal – a growing trend among large private equity investors and asset managers globally – is understood to boost Blackstone realty portfolio. The big real estate buyouts in recent times that have caught the attention of Singapore were the recently concluded Global Logistic Properties deal, United Engineers and CWT.

CRT that had been backing the buyout and privatisation, had said in June that the trust 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’s asset portfolio comprises 11 retail properties which include Aeon Town Moriya, Aeon Town Suzuka, Mallage Shobu, Luz Omori, One’s Mall, Croesus Shinsaibashi, Croesus Tachikawa, Torius, Fuji Grand Natalie, Mallage Saga and Feeeal Asahikawa.

Blackstone, backed by heavy real estate portfolio, has been seen to be quite bullish on the Asia real estate sector and is among the largest institutional real estate investors worldwide. It is also one of the largest retail owners in the world, with investments in 563 properties globally and 15 properties.

The firm had appointed veteran banker Christopher Heady as chairman of its Asia-Pacific businesses, promoting the executive who helped the firm expand its real estate business in the region.

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Singapore: Blackstone Group makes $650m bid for Croesus Retail Trust

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.