Cromwell European REIT is a mega IPO that will raise S$ 2 billion.

I looked at the distribution yield first.

7.5% (@ 57 euro cent per unit) to 7.7% (@ 55 euro cents per unit).

Then, I looked at the gearing level.

34.3% to 36.6%.

It would have been better if it were below 30% but it is not excessive.

Then, I do what I do pretty often which is to compare with other REITs in the same sector.

Alamak.

This is where the problem lies.

This REIT has a rojak portfolio of 81 retail, office and light industrial properties in 6 European countries(Denmark, France, Germany, Italy, Poland and The Netherlands).

How to do comparative analysis like that?

OK, with IREIT Global taking a pan-European strategy, it could be a good candidate for comparison in future. As of now, IREIT Global still has properties in Germany only.

IREIT Global offers a similar distribution yield (7.6% at 76 cents per unit) but its gearing level is higher at 41.3% …