Afternoon, and welcome to the Stoneweg Europe Staple Trust webinar. We will begin with a presentation from the CEO of the manager, Simon Garing, followed by a Q&A session. During Q&A, please click the raise hand button to be placed in the virtual queue. Alternatively, you can submit text questions via the Q&A feature. Now, I will hand across to the CEO of the manager of Stoneweg Europe Staple Trust, Simon Garing. Simon, over to you.
Thanks, Melissa, and good afternoon to everyone. Thank you very much for taking time out in your busy lunchtime break to join me this afternoon. Yesterday, we announced that SERT has entered into the acquisition of the REIT and the BT management companies of SERT, as well as the European management and operating platform. This also includes the management of third-party asset management, which we will also talk about as an exciting initiative for the group. We think this is one of the most significant strategic steps taken in our evolution, and we are certainly building the foundation for the next phase of our growth. To bring everyone up to speed, SERT is already a large-scale European logistics platform with a predominantly logistics and light industrial portfolio, providing stable cash flows with a growing digital infrastructure strategy.
As we showed in the first half results last month, we are continuing to pivot towards a 70% weight to logistics and 15%-25% weight to data centers via converting both a handful of SERT's own assets and via investing in Stoneweg's AiOnX Data Center development platform. Our structure is well-defined. The REIT provides the recurring income and stable growing distributions, and the business trust provides the flexibility to pursue these higher return opportunities, such as the data center developments and strategic investments. We will now discuss how we are enhancing the platform that executes this strategy and the additional benefits that today's and yesterday's transaction will bring to security holders. Investors should think about this internalization as the acquisition of a Pan-European platform, rather than simply the acquisition of a REIT manager.
Today, security holders own a portfolio of assets, but going forward, they will own both the portfolio of assets and the platform managing those assets. For details on this slide on the screen matters. The effective consideration of EUR 94 million for the manager and platform operating company. This is a 29% discount to the independent valuation. SWI Group, as the seller of the company, will subscribe for 40 million SERT securities at EUR 2 per security, well above the current market price of EUR 1.50, and a slight premium to the NAV of SERT. The bottom line is that the pro forma impact of this transaction shows a 5.9% accretion to dividends, taking pro forma DPS up to EUR 0.1418 . Based on the latest VWAP, this implies, at today's price, a distribution yield of over 10%, which is almost 200 basis points higher than the current yield pre-doing this transaction.
Security holders acquire a platform at a discount to valuation while receiving immediate accretion. Slide four captures this fundamental change from a REIT paying fees to the sponsor and manager, to now earning fees. Last year's SERT distributable income was EUR 74 million, after paying Stoneweg EUR 28 million in fees. Based on our estimates, under our new organization structure, this would deliver approximately a EUR 13.3 million EBIT in the next 12 months, otherwise would accrue to Stoneweg, now accrues to you as the investor in SERT. Following internalization, SERT retains this EUR 13.3 million as its EBIT inflow, while future value creation increasingly accrues to security holders of SERT. We can also reinvest some of this into the business while growing distributions. Security holders move from funding a platform to now owning the platform. One of our objectives in this transaction was ensuring the transaction creates value immediately.
The purchase consideration nominally is EUR 114 million, but the effective consideration is EUR 94 million on the basis that this prices the transaction at a material discount of 29% to the midpoint independent valuation of EUR 133.2 million. Regardless of how you want to treat the EUR 20 million of value between the share price being issued at EUR 2 rather than being issued at today's price, regardless of that, this represents approximately EUR 39 million of value creation just by buying an asset at this material discount to its valuation. This transaction is supported both by an independent valuer and by observable market precedents. The valuer BDO has used a DCF approach, adopting a discount rate of 12.3% and a terminal growth rate of 2% based on five years of explicit forecasts.
However, what we've also shown here on the left-hand table is the valuer has adopted a number of comparable transactions shown here with a summary of the key metrics, both price to asset under management, price to earnings, and price to revenue metrics. What we can show is in the first column, is our purchase price is at an even more attractive multiple than the valuer's assumptions. We are effectively paying 2.9% of assets under management, a price to revenue of 2.6 x, and a price to EBIT of 7.1 x, versus the valuer's assumptions on the right-hand column, which you can see through the midpoint is roughly 20%-30% higher than the price we've paid. The right-hand football field shows that in the 15 or so comparable transactions, there's obviously a wide range of valuation multiples that have been applied.
The orange column highlights the bandwidth that the valuer has put on our valuation of EUR 133 million. But our consideration of EUR 94 million is well below that of even the lowest price paid in those 15 comps. I'm really pleased to be able to say the purchase price of this asset sits very favorably for you as the security holder. This is in part because SWI Group, Stoneweg, the seller of this company, is going to become a 33% shareholder in SERT, up from the current 28%. In one hand, it was prepared to sell to us at a lower price and valuation in the expectation that that should help the share price grow. That's really where the alignment of this transaction occurs.
This is borne out on the next slide, where we're showing that the EUR 2 per security that the sponsor is subscribing for the 40 million shares, is well above the prevailing market price and well above the trading history of the last year and a half. I should also add that the shares are being locked up for 12 months and are not entitled to the second half 2026 distributions when they're issued at the end of this year. So very much the SWI Group, our sponsor, showing confidence in the long-term value of the platform and the benefits of this transaction to you as the security holder of SERT. This transaction is possible because of the work that we've completed over the recent years under Stoneweg. Five years ago, we did not have the scale, capability or strategic positioning to undertake this transaction.
Today, the platform manages approximately EUR 3.2 billion of assets with around 100 professionals across Europe and Singapore. We now have scale and logistics across our 10 countries in Europe, and a business trust that provides for further data center developments in addition to the logistics. The three key elements of Project Ignite, as we call this project, are listed on this page. Let me take you through a little bit more detail of each of the three benefits. As I mentioned before, the structure of the deal is 5.9% accretive to DPS, while causing no material change in NAV and net gearing. How does this happen? This next slide captures the strategic and economic benefits to the stapled security holder as a result of this internalization.
The table on the left-hand side shows SERT's pro forma FY 2027 EBIT of this operating platform that we're acquiring at EUR 13.7 million for the EBIT of 2027. This is well supported by the valuer's pro forma EBIT of EUR 13.3 million, which is a slightly different timescale of between September this year through to September 2027. But roughly, we're looking at a business that's generating earnings of between EUR 13.3 million and EUR 13.7 million, depending on the timeline that we're looking at. This, after transaction financing fees and after tax, ends up with a net distributable profit of EUR 10.1 million for next year. The chart on the right-hand side then illustrates how the projected EUR 10.1 million distribution benefits a 5.9% accretion. In other words, the REIT continues to provide the EUR 0.1339 with EUR 74 million of distributable income. Investors now own both the REIT and the platform.
The REIT earns EUR 74.3 million. The platform earns EUR 10.1 million. So combined, you as the shareholder, you're entitled to the EUR 84.4 million. With the extra 40 million shares on issue, now 595 million, the distributor per share goes up to EUR 0.1418 . So there's no financial engineering in this EUR 10.1 million. It's simply the earnings coming out of the company that we're buying. That's just added to your investment in the REIT, which is delivering the EUR 74 million. So we'll take more questions, post this, but I think this is a very important set of numbers to show to you that we are adding a new company to the REIT. That company is delivering standalone profits. Now, some of those profits are coming from the REIT. So in the EUR 74.3 million, that's including fees. So net-net, it washes out.
But in total, at a consolidated line, we get to EUR 0.1418 . The profit that Stoneweg was making out of managing the REIT, that profit now goes to you. Turning to page 10, I want to look at now the benefit going forward. Under the external management model, acquisition and management fees reduce the distributions of an acquisition to you. Following internalization, substantially more of those returns remain within SERT. This slide highlights an example under the current model. If we were to acquire a 6% yielding property, we lose around 110 basis points of that yield from the fee structure. Future acquisitions become more valuable because we don't need to hire a new asset manager in Amsterdam or a new asset manager in Paris, or pay transaction fees at the group level.
We now have the opportunity to also partner with co-investors, managing their investment share of an asset, accelerating AUM, delivering further economies of scale to SERT, and now providing additional potential pipeline. Overall, this transaction will see a lift in our EBIT margins, which improves our overall interest cover and our credit metrics, again, helping to support our bond market. We might just turn to page 13. For long-term investors, this may be one of the more important slides in the presentation and supports why this internal REIT model is adopted in most parts of the world and favored by most global investors and governance experts. Historically, security holders owned the assets and paid fees with little oversight over the manager, as the sponsor owns the manager and the sponsor owns the operating platform and earns its profits from that.
Following the acquisition of the manager and of the platform, the REIT investor now owns both. So ownership, governance, and economics of the management entities and the broader platform moves into the SERT structure. The next page shows that the company that we're acquiring has been around for 30 years, and we're showing you here the last nine years of history. We're not acquiring a new management company. We're acquiring a platform with decades of operating history. The platform has consistently managed approximately EUR 3 billion- EUR 4 billion of European assets across multiple market cycles, both for the REIT's assets but also for household name private equity firms and global institutional investors. We are fortunate that the transaction comes with this novation of the third-party asset management business.
There are currently 11 mandates that are predominantly logistics and light industrial across Europe, with around EUR 820 million of assets under our management in very large portfolio. We're talking 618,000 sq m across 46 assets. This complements SERT's portfolio, which is around 1.6 million square meters at around 96 assets. Now, some of these mandates have value-add strategies, meaning we're being asked to buy an asset, fix the asset, and sell the asset, or the client has asked us to develop a large-scale, big box logistics warehouse. This new business line provides SERT with an enhanced pipeline, recurring and other fee income streams, institutional relationships, co-investment opportunities, operating leverage, and it's a proven global business model. A stronger asset management platform supports a stronger REIT.
We've also intentionally structured downside protection into this transaction, such that if some of those mandates that have change of controls do not come across to SERT, then the purchase consideration that we're paying drops down considerably. Even under a very unlikely scenario that some of these third-party mandates don't come across to us, the transaction still remains DPS accretive because the purchase price has been dropped. What I wanted to say on the third-party business, it's not just about fees, it's also about ensuring that we retain best-in-class transaction teams and best-in-class development teams. What do I mean by this? When SERT previously had wanted to go into a particular country to acquire an asset, that has come through our truffle hunters in each country, our transaction team, our acquisition team in each country.
Now, SERT is not always buying in any one particular country, but we want to make sure that our dedicated teams that are in Copenhagen or in Milan or in Paris aren't just sitting there idle, doing nothing for the year that it takes before SERT wants to go back into those markets. So these people are actively involved with these third-party mandates, that if they find an asset that suits a particular investor's interest, then they can go forward with that acquisition, even if SERT, at that point, is not looking to buy into a particular market. So it's a way of retaining very high-performing level staff. It's a way of motivating them by keeping the doors open with more capital supply than just SERT's supply. And I mentioned earlier about co-investments.
This is something that in Singapore, you do see in some of the larger assets, where there are multiple owners of a particular asset. Now, if that was to occur in our case, we would be the asset manager on our share of the asset and on the other investors' share of the asset. So we would control the asset with SERT only owning a part of it. And we think this is a very valuable growth prospect in addition to the current growth opportunities that SERT has. One of the common concerns around manager internalization is potentially losing the access to the sponsor capabilities. But we've deliberately addressed this issue by entering into two strategic cooperation agreements with Stoneweg. With almost a 33% stake in SERT, the Stoneweg group is aligned to support our value creation also. But we've documented this agreement.
In these documents, SERT receives exclusive logistics and light industrial rights across Europe, with Stoneweg signing a non-compete. We have preferred data center access to its development management specialist skills of their digital platform. We have set out a set of controlled fee structures to be able to manage some of our data center projects, which will also include a finder's fee should Stoneweg bring us a new client mandate or a new off-market investment opportunities. Importantly, where no broker has been involved. So this truly has to be a finder's fee. It's not mandatory. There's no hard lock-ins for us. So we're free to deal with others as well. This is just an added comfort for you as the security holder that Stoneweg is not just simply selling the business and moving off into the sunset.
Investors will retain access to Stoneweg's capabilities while owning the platform directly and gaining complete independence. Let me turn to the governance and some of the benefits of this structure. Our board combines expertise across real estate, investment management, banking, governance, and global capital markets, while maintaining a majority of independent structure. Something that Singapore REIT investors aren't familiar with. As part of this new structure, you as the security holder will have the ability to vote for the reappointment of one-third of directors every year under the SGX listing rules. Long-term incentive remuneration matters will also fall more into the hands of the owners of SERT, i.e. you.
You will have transparency and control of the number of shares and in long-term incentive scheme that the board and the NRC of the board look to put in place for the C-suite of your group. This is very novel here in Singapore for REITs, and this is something that the global investors, in particular, are very familiar with. One of the strengths of the transaction is the continuity of both the SERT team and the operating platform management team. We have assembled an expanded SERT leadership team with deep experience across real estate, capital markets, private capital, operations, and corporate governance to support the next phase of SERT's growth. We will continue to invest in our people and selectively strengthen capabilities where required, ensuring the platform has the depth and expertise to support future growth while maintaining cost discipline.
We will be an AI-enabled group to reduce the mundane and really free up time to focus on the value add. Long-term incentives are aligned through SERT securities, as I've mentioned before. We intend to broaden the participation in the LTIPs across the whole platform, giving employees a greater sense of ownership and creating a stronger sense of alignment between employee performance, platform performance, and ultimately total return to you as the security holder. This next page highlights the technical structure of the proposal. Let's not focus on all of the boxes. It's a very tax-efficient structure and will result in transparent financial statements, so you can monitor the performance across the three pillars. The management entities and operating platform becomes part of the overall structure owned by you, the security holder.
Distributions can be made from the operating earnings of the share trust that owns the asset management platform, as well as out of the REIT and as well as out of the BT. Economic interest, governance, and platform ownership are very aligned. Let's try and simplify this structure. Today, investors view SERT primarily as a logistics and light industrial REIT with a business trust that invests in data center development opportunities. Post-internalization, we will have three complementary earnings engines. The first two on the left-hand side, with the REITs producing stable and growing property income. Nothing changes there. The new share trust, the asset management, portfolio management platform. This generates recurring fee income and transaction-related fees and potential performance fees, which supports the payment of the salaries and the operating costs within the platform. These two pillars provide for stable and growing income and NAV.
The third pillar remains the business trust, and it's emerging high returns and growth opportunities focused on digital infrastructure and data center developments. That also is there as a higher growth, the alpha generation. The underlying platform operating in the 10 European jurisdictions and Singapore provides SERT with greater strategic flexibility and increases its relevance to global investors and capital partners. What's next? The process from here is relatively straightforward. There are four ordinary resolutions to approve the acquisition of these management companies or the internalization, issue 40 million SERT securities to Stoneweg, approve the whitewash waiver to enable Stoneweg to cross that 30% barrier without having to launch a full takeover, and enter into the cooperation agreements, which are deemed related party transactions.
We require the MAS approval on this transaction still, we're working with them, and to clear other customary market CPs ahead of the EGM. Following the SGX review of the circular, it is targeted to be distributed to investors in November. The EGM is slated to be held on the 7th of December , with the first completion expected by year-end. We look to complete the full operational integration by the middle of next year. Let me conclude. Project Ignite, as we've named this transaction, is more than an internalization of the REIT manager.
SERT investors acquire a platform at a 29% discount to valuation, receive immediate 5.9% DPS accretion, gain ownership of the management platform with a third-party asset management business attached while retaining strategic access to logistics and data center opportunities with improved investor rights over governance such as board appointees and remuneration matters. We look forward to your support, and we'll take questions that you might have. Melissa, please open up the call. Thank you very much.
Thank you, Simon. We will now begin the Q&A session. As a reminder, to ask a question, please select the raise hand button to be placed in the virtual queue. For those dialed in, please select star nine to raise hand and star six to mute or unmute. Alternatively, you can submit text questions via the Q&A feature. Both options can be found at the bottom of the Zoom interface. We currently have no questions in the queue. As a reminder, please use the raise hand feature at the bottom of the screen if you would like to ask a question. Okay, Simon, there are no questions in the queue.
Thank you, Melissa.
Would you like us to wait?
We'll give it one more minute.
Okay. We have our first question. Thank you. [Homia Basania], I hope I pronounced your name correctly. You are our first question. If you can unmute yourself and ask your question, that would be great. Thank you.
Hey, Simon. Hi, this is [Homia] from [inaudible]. Congratulations on this next step. I think maybe you're setting a trend in Singapore now. The only question I have is what was the trigger for you guys to do it now? Because you've been listed for eight, nine years. Did something happen? Are there strategic changes in the background which has led to this thing happening? Because I'm not sure there was a huge amount of investor pressure to do it. Maybe there was. But is this part of a bigger thing that you guys are thinking about?
Yeah, it's a very good question. Specifically on timing, we are coming up to a contract negotiation on the fees between the REIT and the European property manager. If you go back to the IPO prospectus, it talked about a fixed fee structure for the first 10 years, and then an opportunity to negotiate the fees at the end of the ninth year in time for the automatic renewal for the following 10 years. Okay? That was coming up. Secondly, when we were acquired by Stoneweg, we could tell that they were very much entrepreneurs themselves. We could tell they were really value-focused, that they weren't employees of a larger global organization, that this was their own money.
It was Max and Jaume's own EUR 280 million that they invested in the REIT and in the management platform when they acquired that from Cromwell at the end of 2024. What we've been doing over the last few years working with them is we've been trying to maximize the opportunity. The first thing that we did in April last year was we created the business trust. We stapled a structure together that enabled the business trust to then take advantage of Stoneweg's data center development platform. We very quickly after that, invested into Europe's largest data center development platform, AiOnX, and we are looking at other opportunities to grow our data center development exposure. I can come back to why that's an important part of our growth strategy. For that growth, we need capital.
If we are going to maximize the opportunity to raise capital at reasonable prices that are accretive, we need to be in a structure that encourages more investors to look at us. An internal managed REIT is a globally recognized and preferred structure. There is nothing wrong with an external managed structure here in Singapore. I am not saying that. I am just saying for where we are, which is a European portfolio, that European and global investors that can see some of the exciting opportunities in our portfolio, we do not want them to balk and say, "Oh, we like what you are doing, but you are an externally managed REIT. The governance is not so good, not aligned," blah, blah. We now take that off the table.
This now means that going forward, not just in Singapore, but globally, we should be more attractive for more capital to support our opportunities that will end up driving higher dividend growth and higher valuation growth, and ultimately higher share price growth. This has all come at the same time, as the sponsors themselves changed direction earlier on this year. Previously, our sponsor for 15 years has been a private family office with some institutional investors in it. But earlier on this year, they listed their company on the Euronext in Amsterdam. Now, they listed that company at EUR 3.75 per share. That company is now trading at EUR 12 per share. Why is that? It is because European investors are seeing the value in the data center developments.
That company in Europe, its two major investments on its balance sheet is into AiOnX, which we have a stake in as well, and its investment in us. Global investors are looking at our sponsor, pricing that at a substantial premium to where it was six months ago, versus where we are, which is not quite in the same situation. What the sponsor is doing is it is looking at its own investments and saying, "Okay, we have this really strong logistics and light industrial platform that serves SERT, and it serves other mandates. Let us combine that in with SERT. Let us offer SERT the ability to integrate the management with the REIT, and deliver the accretion and deliver the earnings, and allow the REIT to be very focused in logistics and light industrial." This is why we are exclusive.
The sponsor will go off and do something similar in hotels. It will do something similar in living. It will do something in alternatives, and it will do something in digital. This year, it has all come together nicely as part of a longer-term strategy, but the timing, we think, is ideal.
Thank you, Simon. Onto our next question from Victor Co. Do you foresee more of such internalizing of the asset manager within the trust structure among listed trusts in Singapore?
Victor, I am sorry. I can only give you that typical Premier League manager's response, which is, we are very focused on our own team, our own game, our own strategy. This works very well for us, very well for SERT security holders. We have size and scale in Europe. We have a very long track record, 30 years, of doing this in Europe, while we have had a good track record here in Singapore of nine years. This works for us. It is not up to me to comment on other games, on other teams.
Okay. Thank you. Next question comes from N.Y. Following the internalization, SERT will have a broader platform encompassing property ownership, asset/property management, and increasing logistics/data center exposure. What limits will the board impose on development exposure and leverage? Under your current business plan, do you foresee any need for a rights issue or preferential offering from existing security holders over the next three years?
Thanks, N.Y. Some very good questions in there. Firstly, can I say, the development exposure limits do not change. The REIT still is governed by the MAS rules and laws around the 10% of developments plus the 15% of brownfield developments. While there is not the same constraints on the business trust, our board has come out to say that at the stapled level, we will still undertake to minimize that development risk and to assume the same cap applies to the staple. In terms of need for further capital, there is a nuance in this question. The KPIs of the management team that are disclosed in our annual report and have been for nine years, there is nothing about size.
You've never seen me say, "We want to get to a certain size in assets." We are remunerated and incentivized to grow the dividend and grow the share price, both on an absolute return and on a relative return. We are very incentivized to grow earnings. There's a reason we haven't raised equity in the last five years. In fact, we've been very strong since 2022 about selling assets, keep the gearing below 40%, and manage the balance sheet within that constraint. Not to raise the equity that would see NAV fall or dividend fall as a result of buying for some sort of arbitrary growth. The messaging in today's internalization transaction is that still holds. We've raised EUR 80 million of equity at NAV or a slight premium to NAV, and we've grown the dividend by 6%.
That's very unusual for a REIT trading at a 25% discount to its NAV to be able to achieve that. That's because we're buying a company on a 14% yield. We're buying this company on a 7x EBIT multiple, which is, as you've seen with the valuer, is low. A low multiple equals a high yield. We're buying a company at a 14% yield and issuing equity at a 7% yield, i.e., the yield at NAV. Going forward, the decision-making is still based on the same principles, grow dividends, grow share price. What the internalization means, and the acquisition, as you've pointed out in your question, is we now have another growth leg that may not require our capital.
To the extent that an institutional investor or a sovereign wealth fund or a family office wants the SERT team in Netherlands or the SERT team in Germany or the SERT team in France to manage their assets from which we get fees for managing those assets, then we can grow the earnings without having to raise our own capital. We also have the opportunity to joint venture, and in fact, in some of these 11 mandates that we're taking on, the EUR 820 million of assets, we actually do own some co-investment in those assets. We have skin in the game. Often a client will say, "Okay, we want you to manage these assets, but we want you to have an investment alongside us. We want you to have skin in the game."
In addition to the acquisition of the platform, we're also acquiring around EUR 8 million of co-investment stakes in some of these assets, in some of these mandates. That then produces potential pipeline. If we have 46 assets that we're managing for these 11 mandates, and we own a percentage in these assets, then yes, we have opportunities to acquire these. But I come back to, we would only do so if it was accretive to earnings and accretive to the share price. Is there a specific answer to your question? No. In the next two to three years, we have not planned for raising equity. We are planning to grow earnings, grow dividends, and grow the share price. Clearly, the higher the share price, the more accretive an acquisition could happen.
Now, let's come back to the data center opportunities. This is why data center opportunities, development opportunities, are very important for our growth. When we go and buy a logistics asset, typically we'll be paying something like a 6% to a 7% yield, 6% - 7% cap rate. If you go and buy a data center today that's already got a tenant in it, then again, you're paying a 5% - 6% cap rate. There's no difference in the return of buying an existing data center to buying an existing logistic asset. This is why we look at the data center development as our strategy.
Because of the demand for data centers by tenants, the AI hyperscalers, as an example, relative to the cost of building the shell of the data center, remember, we're not putting in the AI compute, we're not putting in the GPUs, we're just building the core and shell with the power. We can deliver a 12%- 15% yield on the development of these data centers. It's the development of the data centers that is exciting property developers. The REITs that just own an already built data center, they're not the ones getting the returns. It's the developers getting the returns. They can build a 12% yield and then sell it at 6%. We're talking about IRRs of 25% - 40%, relative to going and buying an existing asset, which typically today sells between 6% and 8%, 6% and 9% IRR.
If we raise equity today, it's at a 12% - 13% IRR. That's the cost of our equity. When we're trading at EUR 1.5 or SGD 2.25, we need to buy something that has an IRR higher than that cost of equity for it to be NAV accretive and dividend accretive. There are opportunities in the market through Stoneweg, through AiOnX, that we could look at that have much higher IRRs, much higher yields than our cost of equity. As a CEO, I'm never going to rule out an equity raise. But what I will say is that our view on raising that equity would be exactly the same principles and framework over the last nine years as it will be going forward, is treat equity as something scarce. Treat it with respect.
Treat the unitholders with respect and make sure that if you do a capital raise, it's on the basis that it's the right thing for the security holders, that it's the right thing for earnings, it's the right thing for value. Under an internal management scheme, that would be the only reason we would raise equity anyway. As an external manager, you get paid on the size of your vehicle. There's a little bit of an incentive, perhaps, to grow an external managed REIT, to grow the fees. In an internal managed REIT, there is no point in just getting bigger because those fees don't leak off to someone else. They're with you. It's a zero-sum game. We would only look at raising equity if it's good for dividend, it's good for the NAV, and it's good for the long-term share price performance.
A long-winded answer, N.Y., but I hope that explains where we're coming from. Thanks, Melissa.
Thanks, Simon. Our next question comes from YL Chu. Previously, there was another Singapore-listed real estate investment trust who tried to internalize the manager, and it took almost two years to complete and cost much more than initially planned. How will you do things differently in order that you meet your presented deadline and cost?
Sure. The first thing to say is, this is very much an agreed deal between two boards, two parties, both the SERT board and the SWI Group board. From a SERT board's perspective, we've had the verification of the price. So we're paying EUR 94 million, and the price is worth EUR 133 million. This is good for SERT. We're showing it's very accretive. So again, it's good for SERT. We're showing that the multiples that we're paying are, on a comparable basis, the lowest of any multiples that the valuer could find. We have an IFA report that will be released when the circular is released from Ernst & Young, which would then presumably say something along the lines of that this deal is fair and reasonable and is not prejudicial to the market.
I don't want to preempt what they'll say, but that would be the preface that we would only come to the market when we could tick those boxes. We have full SGX sign-off in the circular, and by the time we come to the shareholder meeting, we will have had the MAS approval. So we think we tick the boxes of all the things that shareholders will care about that are required to vote. We also know that Stoneweg, as part of its undertaking on the whitewash waiver, will not vote on the four resolutions. So it's very clear that this transaction is in the hands of all shareholders other than Stoneweg, who will not be able to vote the 28%. They're fine with that because they see this transaction as very, very positive for the minority shareholders of SERT.
While I don't want to necessarily compare to other REITs, I did want to set out why we think that this deal is a very good one for SERT. It's aligned with the sponsor's own business model for us to be the leading and most trusted logistics group in Europe. We look forward to your support. As you know, for nine years, we've been very transparent. We rank very highly in governance awards. We just recently have been awarded the most highly governed and transparent REIT in Singapore. We are not coming at this through some sort of nefarious backdoor, backroom dealing. This is very much front and center, full disclosure. It's a good transaction for minority shareholders.
Thank you, Simon. Confirming there are no more questions in the queue, and our Q&A session has now come to a close. I will now come back to you, Simon, for closing remarks.
Terrific. Look, I appreciate everyone taking time out of their busy lunch period. Again, just to conclude, we think acquiring this platform at a 29% discount to valuation, receiving immediate value uplist, immediate dividend accretion of around 6%, you gaining ownership of the entire management platform across 11 countries with a third-party asset management business, which provides extra strategic benefits and extra financial benefits, as well as retaining some of the core benefits of Stoneweg via their data center development capabilities, which will continue to add value to SERT. As well as then getting more governance and investor rights as part of this transaction. We very much look forward to your support. We very much look forward to continuing to engage with questions.
Please feel free to submit more questions into our investor relations email address, which you'll find on the SERT, Stoneweg Stapled Europe Trust website. Again, we're very happy to come and see remisiers and your clients as well over the coming weeks. Thank you very much. Look forward to seeing you on December 7th.