Cromwell Property Group (ASX: CMW), today announces that it has entered into a binding agreement for the sale of Cromwell’s European fund management platform and associated co-investments for a total consideration of €280 million / $457 million to Stoneweg SA Group (Stoneweg), a Geneva headquartered, multi-strategy real estate investment manager with over €4.0 billion of assets under management.
The Transaction covers all components of Cromwell’s European business. The assets of the Cromwell Polish Retail Fund do not form part of the Transaction as they were subject to a separate sale process as previously announced, which was completed on 15 May 2024 in Europe.
The Transaction is consistent with the Group’s commitment to simplify the business to transition to a capital-light funds management model. The exit from the European business allows Cromwell to focus on its core competencies in Australia and New Zealand and positions the platform for future growth.
Highlights:
•Cromwell has agreed to sell its European fund management platform and interests, including the Cromwell Italy Urban Logistics Fund and Cromwell European REIT, to Stoneweg for €280 million / $457 million (Transaction)
•The Transaction continues the Group’s strategy to simplify the business and transition to a capitallight fund management model, through the sale of non-core assets and realigning to Cromwell’s core competencies in Australia and New Zealand.
•The Transaction, together with the completed divestment of the CPRF portfolio, puts Cromwell in a strong financial position to execute on its stated strategy, with significant capital to redeploy to pursue value accretive opportunities when markets are conducive, to provide longer term growth for securityholders
Commentary:
Cromwell’s CEO, Jonathan Callaghan commented:
“I strongly believe that Stoneweg is an excellent match with very little overlap in terms of geographic and asset class focus. We are confident they will be the right custodian for the capital that our platform manages and are well placed, enabling it to support these mandates and funds including the continued growth of CEREIT.”
ASX annoucnement: https://announcements.asx.com.au/asxpdf/20240523/pdf/063v2qxhkhjnsj.pdf