Stoneweg European Reit (formerly known as Cromwell European Reit)

[Shrivathsa]

Interestingly, another European REIT is shooting up. My guess is it is due to a combination of interest rate cuts by ECB and the impending conversion to a Business Trust being the catalyst.

https://links.sgx.com/FileOpen/Stoneweg%...eID=847967

Am curious on whether if one has this under CPF Investment Scheme, what happens to those units? From memory, CPF IS does not allow Business Trusts, or would this be exempt since it is a conversion from REIT to Business Trust?

[ghchua]

Am curious on whether if one has this under CPF Investment Scheme, what happens to those units? From memory, CPF IS does not allow Business Trusts, or would this be exempt since it is a conversion from REIT to Business Trust?

Hi Shrivathsa,

No. It will not be exempted. Business Trust as an asset class is not included under the CPF Investment Scheme even when it was converted from a REIT. This had been seen in a previous case study from Capitaland Ascott Trust, when it was excluded from CPF Investment once it was converted from a REIT to a stapled security (which includes a BT component).

Your existing units will not be affected. They will remain in your CPF Investment Account. You can choose to hold or sell them in future.

However, you will not be able to add onto your existing holdings using CPF funds. Which means, if there is a rights issue, you will still be entitled to it but you will need to use cash to apply and the new rights units have to be transferred out to your CDP account after successful application.

PS: Moderator, could you please help to change the name of this topic to reflect the new name of the REIT? Thanks.