Andrew Cannane

Perpetual, the only trustee with licenses to provide trustee services in both Australia and Singapore, has been appointed share trustee in the first ever internalisation of a manager for a Business Trust listed on the Singapore Stock Exchange (SGX).

Croesus Retail Asset Management (CRAM), as trustee-manager of Croesus Retail Trust (CRT), has selected Perpetual (Asia) to hold all issued shares of CRAM, a move that will provide a number of benefits to CRT and its investors. The internalisation will:

• Reduce management costs of the Business Trust
• Better align the interests of investors to the trust
• Allow the trustee-manager to provide a better suite of services to investors

Currently, all Singapore Real Estate Investment Trusts (S-REITS) and Business Trusts are structured in a way that sees the management and day-to-day operations of the trust fall to the external manager or trustee-manager.

Perpetual General Manager Managed Funds Services at Perpetual, Andrew Cannane, said the successful internalisation of Croesus may lead to a number of S-REITs considering whether to internalise their management and operations functions in the future.

“This is a significant appointment – a first in Singapore – and highlights Perpetual’s ability to facilitate complex transactions for vehicles listed on the SGX.

“An internalised model provides better transparency for investors by fully aligning the interests of the trust to the interests of investors. We expect this model to bring long term benefits to investors, and could be the first of many internalisations for vehicles listed on the SGX.

“We are committed to growing our presence in Asia, and this announcement demonstrates Perpetual’s ability to provide services to some of the largest investors and asset managers globally.”

Croesus Retail Trust is a SGX-listed Asia-Pacific retail business trust focused on investing in a diversified portfolio of predominantly retail real estate assets located in Japan and across the Asia Pacific region.

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