Stoneweg European REIT is proposing to convert into a stapled trust comprising both a REIT and a business trust:

The Manager believes that the Proposed Stapling will benefit Unitholders by providing Stoneweg European REIT with a future-proof corporate structure with optimal tax efficiency.

Furthermore, the stapled real estate investment trust (“REIT”) - business trust (“BT”) structure reduces reliance on passive rental income, balancing the more passive income stability of a REIT with the growth potential of a BT, making it more resilient to market cycles. While the REIT component benefits from preferential tax treatment in Singapore, having a stapled REIT-BT structure may allow for greater tax structuring flexibility, especially in Europe.