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.