Stoneweg Europe Stapled Trust (SERT) is a stapled trust comprising Stoneweg European REIT and Stoneweg European Business Trust. It’s a growing European logistics, office and data centre real estate player.
Today, it invests in income-producing properties across Europe, strategically focused in office, logistics and data centre sectors, while selectively pursuing value-added redevelopment opportunities to enhance portfolio quality and earnings resilience.Â
SERT is listed on SGX [SET (Euro €) and SEB (SGD $)].Â
In this article, I will discuss why I believe SERT is a turnaround story with growth potential while yielding ~8.6% for investors. Â This is also part of my strategy mentioned in my previous blog post here.
In case you missed my recent posts: |
1. Strong sponsor aligned with unitholders
For those unfamiliar with SERT, it was the former Cromwell European REIT (CEREIT) which IPO-ed in 2017 with 74 properties and a portfolio value of ~€1 billion.
In Jan 2025, its current sponsor, Stoneweg Icona (SWI) Group listed on Amsterdam Stock Exchange bought over CEREIT and its manager and renamed it as SERT.Â
SWI is a global investment conglomerate with holdings across digital infrastructure, real estate, financial institutions and hedge funds. SWI focuses on long-term value creation and manages ~€11 billion assets in 17 countries.Â
With ~28% stake in SERT, SWI Group has skin in the game and is strongly aligned with SERT’s unitholders.Â
Since taking over, the sponsor and manager have been pivoting from underperforming properties towards growing logistics and data centres while divesting non-core office assets to increase exposure to logistics/light industrial/data centres from the current ~60% to closer to 70% by 2027.Â
This pivot rides on tailwinds via e-commerce penetration, supply chain reconfiguration, accelerating AI and cloud adoption across Europe, which drives sustained demand for logistics and data centre assets, supporting occupancy and rental growth.
Management also aims to exit slower Central/Eastern European markets to focus on the more developed Western European cities (see SERT’s geographical portfolio below).
2. Well diversified portfolio of assets with diverse tenant base
SERT’s current portfolio has more than doubled to ~€2.2 billion (up from €1 billion at IPO in 2017).Â
It comprises over 95 predominantly freehold properties (up from 74 in 2017) in major gateway cities in the Netherlands, Italy, France, Poland, Germany, Finland, Denmark, the Czech Republic and the United Kingdom.Â
The portfolio spans ~1.6M sqm of lettable area (up from ~1.1M sqm) across ~1,000 leases (up from ~700 leases in 2017), providing a diversified income base with sustainable distributions.
The resilience of SERT’s diverse customer profile of more than 750 tenants is underlined by the fact that the top 10 tenants contribute less than 22% of their rental.Â
In addition, no single tenant contributes more than 4% of SERT’s income and is diversified across various sectors.
3. Early entrant into growing Data Centre industry in Europe
Data is the new gold in the current AI-era. Europe’s data centre market is still significantly underdeveloped compared to the US. However this gap is closing fast as AI and cloud demand accelerates.Â
I believe SERT’s early entrance into Europe’s data centre industry (relatively less invested and developed than USA) could be the unique game-changer, boosted by two growth engines:
a. Engine 1 (Organic growth) – Repositioning/Conversion of selected existing assets
SERT partnered with its Sponsor and identified more than 10 assets across 4 countries as potential data centre (DC) conversion candidates. Its aim is to capture increasing demand and deliver superior risk-adjusted returns.Â
Management is shrewd enough to recognise that even if a handful of sites receive planning approval for conversion, the same land could be worth substantially more, with no additional acquisition cost!
Initial feasibility work has been completed on 10+ sites, with fast-track planning for redevelopment for conversion in 2 to 4 years.Â
Management highlighted that a few projects have attracted interest from major hyperscalers. This asset optimisation approach encompasses potential growth while receiving rental income.Â
b. Engine 2 (Inorganic growth) – Investment into Sponsor’s data centre project
In June 2025, SERT invested €50 million to acquire a ~6.7% stake in AiOnX, the Sponsor’s European hyperscale data centre (DC) development fund with an estimated €30 billion gross development value pipeline in 5 early-stage data centre projects with 1.7GW capacity secured and possibly scaling to 2.2GW (see details of AiOnX below).Â
This investment provided SERT with unique access to private equity style DC development exposure, a rarity for REIT investors. This positions SERT to capture growth through investments in the Sponsor’s pipeline.Â
The best part?Â
SERT’s investment had already been revalued ~41% higher before any DC is completed.Â
In March 2026, SERT invested another €50 million into AiOnX. This second tranche was structured differently from its initial equity injection above.Â
It was made via a mandatory convertible loan with an annual coupon of 7.25% and a seven-year tenure.Â
This income generating investment enhances SERT’s distribution (+2% DPS accretive) with long-term upside that could be converted into AiOnX’s equity with further DC development potential.Â
4. Strong operating track records and active asset management
Stoneweg has been actively driving Net Property Income (NPI) growth through higher rental reversion and strong tenant retention. This is evident from their portfolio rental reversion for FY2025 at 9.8%, much higher than the five-year average of 4.3%.Â
It reported strong leasing success with ~300,000 sqm of new and renewal leases, representing ~20% of SERT’s portfolio.Â
In addition, their Dec 2025 valuation reported an under-renting of ~8% and CPI-linked leases highlight medium term NPI growth potential.Â
SERT’s management also sees potential growth via asset enhancement initiatives (AEI) to improve asset quality to meet tenants’ evolving needs, create long term value and drive organic growth without relying only on acquisitions.
5. Portfolio optimisation and disciplined capital recycling
As part of management’s pivot, SERT has completed over €150 million in divestments of non-core assets and lower-growth markets below:
- Jun 2026 – Divested French warehouse at €5.7M, 3.3% above valuation.
- Mar 2026 – Divested Polish office asset at €22.5M, 5.1% above valuation.
- Mar 2026 – Acquired Dutch modern freehold temperature-controlled logistics facility at €35.0M, 8% below valuation (see figure below).
- Jan 2026 – Fourth consecutive valuation raises SERT’s portfolio value by 1%.
- Dec 2025 – Divested Italian office at €34.0M, 32% above valuation.Â
- Nov 2025 – Exited the entire Slovakia market at €70M, 3.5% above valuation.Â
- Sep 2025 – Divested Italian office asset at €11.4M, 3.0% above valuation.Â
Noticed a trend in SERT’s transactions above? Yes! Management has consistently divested assets above valuations across different countries, while using the proceeds to acquire newer, better properties below valuation.Â
This is a wise use of resources to acquire strategic assets with stronger growth and resilient income.Â
Such disciplined capital recycling also avoids dilutive equity issuance, reduces SERT’s leverage, with targeted buybacks at discounts to increase NAV and improve total shareholder returns.
My Conclusions
Based on its price of €1.55, SERT is undervalued and trading at a discount to its book value (Price/NAV) of ~0.75, compared to other logistics, industrial and data centre REITs, yet SERT offers exposure to all 3 sectors.
A few of these are also inside my portfolio mentioned here.
SERT’s leverage bears some focus, and not forgetting potential execution risk in asset repositioning, possibility of interest rate hikes.Â
However, for an under the radar trust paying us 8.5+% yield to wait for the turnaround story to grow and take off, count me in! As such, I have taken a position in SERT recently at ~€1.53.Â
To your money and health,
Mr MoneyandHealth (Mr MH) 
Any reason why you bought SERT in Euro € instead of SGD? You incur currency conversion costs and added exposure to forex risk. Thanks
Hi Chester, the trading volume for Stoneweg in Euro (SET) is generally higher than in SGD (SEB), so SET is more liquid and has a tighter bid-ask spread and may be easier to buy/sell than SEB.
Some may think buying the SGD counter eliminates the Euro exposure but as Stoneweg owns European properties and declares distributions in Euros before they are converted to SGD, it also depends on the prevailing Euro/SGD exchange rate. Simply buying SGD does not eliminate currency risk
However, if one is investing in Stoneweg for the long term and for dividend income, it’s ok to buy either one. Hope this helps, thanks.
Mr MoneyandHealth (Mr MH)
Thank you for your explanation. Understand better now. So buying the SGD counter does not eliminate forex risk, just the hassle of converting SGD to EUR as well as the costs of doing so.
As for liquidity consideration, i goggled and it indicated tat the 2 counters should be fungible, so there should be no issues with liquidity?
Hi Chester,
You can take a look at the difference in trading volumes between Stoneweg in SGD (Stock code: SEB) vs in Euro (Stock code: SET) in the picture below. Trading volume in Euro is much higher, I.e. easier to buy/sell. But as I said earlier, if you are not doing regular trading of Stoneweg, I feel investing in either one is ok, personal choice. Hope that clarifies 🙂
Mr MoneyandHealth (Mr MH)
Dear Titan,
I’ve been a long term investor in SERT, coming to a decade. 3 comments from me:
1) Simon, is one of the more hardworking, proactive CEO in the SReit space & generally try to take care of unit holders’ interest.
2) I felt that Simon could have gotten a better deal with SERT’s first investment into Aionx( he ought to have negotiated a coupon payment just like the second tranche, bearing in mind that long term capital appreciation is not the primary investment objective of most unitholders, we are after income).
3) Having said that, Simon is a steady pair of hands, knows what he is doing, that’s why I;m sticking around. The juicy dividends just make SERT that much stickier & hard to let go…
Hi Minx,
Nice to hear that you are happily invested in SERT and a long time unitholder! 🙂
Yea, watched a few interviews of the CEO and he sounded experienced and earnest to look after unitholders’ interest 🙂
As for whether he could have gotten a better deal in the first tranche of investment into AiOnX, well, maybe SERT needed to get a foot in first (by taking an equity stake), before they could move on to the coupon payment arrangement in second tranche? Anyway, we don’t know the details of the negotiation.
Cheers to a fruitful investment for many more years ahead 😉
Mr MoneyandHealth (Mr MH)