Stoneweg Europe Stapled Trust has sold an office property in Rome for EUR34.0 million, or some $51.0 million, as part of its "disciplined" capital recycling moves to reduce exposure in this asset class while betting more on logistics and light industrial properties.
The property, called Maxima, was built in the late 1950s and has a total net lettable area of 16,689 sqm.
As at June 30, it was valued at EUR25.7 million by JLL.
The sale at EUR34.0 million, or 32.3% above latest valuation, reflects prevailing market conditions and strategic prioritisation into a hotel project, which requires new zoning and planning consents.
This brings SERT's total divestment this year to EUR140.0 million, achieved at a blended 5.6% premium to the latest independent valuations.
Since 2022, SERT has divested EUR409.1 million worth of assets at an average 11.0% premium to the latest independent valuations, in line with the approximately EUR400 million divestment strategy announced in response to the rise in interest rates that year.
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"While the manager had explored an office reconversion strategy, the asset ultimately delivered superior value as a hotel redevelopment, supported by its prime central Rome location," says Simon Garing, CEO of the manager.
He adds that the transacted price lets SERT to crystallise a significant portion of the expected redevelopment upside without committing development capital to a complex, heritage-listed asset.
Proceeds from the sale will be redeployed into opportunities offering higher risk-adjusted returns across the portfolio, says Garing.
SERT units closed at EUR1.61 on Dec 18, up 4.55% year to date, but still a 20% discount to its reported NAV.
