SGX-listed Stoneweg Europe Stapled Trust (SERT) has announced its first investment in the Stoneweg Icona Data-Centre Fund, marking a strategic move into Europe’s burgeoning data centre sector. This investment, whilst neutral in terms of distribution per unit (DPU), is expected to enhance the trust’s net asset value and provide significant inorganic growth opportunities. The move aligns with the trust’s growth strategy and showcases the value-add of its new sponsors.
The European Central Bank’s current trajectory towards aggressive rate cuts is anticipated to narrow SERT’s high trading discount, currently at a price-to-book value of 0.76 times. Analyst Vijay Natarajan has maintained a “BUY” recommendation for SERT, with a target price of EUR1.90, suggesting a potential upside of 22% and an approximate yield of 9%.
This strategic investment comes at a time when the demand for data centres in Europe is rapidly increasing, driven by the digital transformation across industries. By participating in the early development stages of this sector, SERT positions itself to capitalise on the growing need for data infrastructure.
The trust’s decision to invest in the data centre fund reflects its commitment to diversifying its portfolio and enhancing its growth prospects. As the European data centre market continues to expand, SERT’s involvement is expected to bolster its financial performance and shareholder value. Looking ahead, the trust’s strategic alignment with market trends could further solidify its position in the European real estate investment landscape.
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