Stoneweg Europe Stapled Trust divests office asset in Italy for 34 million euros

[SINGAPORE] The managers of Stoneweg Europe Stapled Trust (Sert) on Friday (Dec 19) said that it has entered an agreement to sell a non-core office property in Italy – Amba Aradam Rome (Maxima) – for a consideration of 34 million euros (S$51.4 million).

Maxima is a single building with a total lettable area of 16,689 square metres, and was completed in the late 1950s. It was the historical headquarters of the national social security institution for the Lazio region.

The statement indicates that the transaction was completed at 8.3 million euro or 32 per cent premium above the June 2025 valuation.

As at Jun 30, the property was independently valued at 25.7 million euros by JLL, as commissioned by the manager, and by Perpetual Asia Limited, in its capacity as trustee of Sert.

The asset delivered superior value as a hotel re-development, supported by its prime central Rome location, said Simon Garing, chief executive officer of the manager of the trust, though an “office reconversion strategy” had been explored previously.

Net proceeds from the sale will be applied towards reducing the revolving credit facility, general working capital purposes, and/or re-investment into other opportunities that offer higher risk-adjusted returns.

Following the divestment, the trust’s exposure to Italy will fall from 18 per cent to 17 per cent, noted a Friday bourse filing.

Sert’s total divestments in 2025 after this move will also amount to 140 million euros, achieved at a blended 5.6 per cent premium to the latest independent valuations.

Since 2022, the trust has sold 409.1 million euros of assets at an average 11 per cent premium to the latest independent valuations, in line with the approximately 400 million euro divestment strategy announced in response to the rise in interest rates that year.

Stapled securities of Sert ended Thursday 0.6 per cent or 0.01 euros up at 1.61 euros.