Cromwell sells European platform for $457m; eyes on ESR
Citi and UBS have helped Cromwell Property Group offload its European funds management business for €280 million ($457 million), in a deal that will rid the REIT of its last remaining overseas business.
It is understood the winning bidder, Geneva’s Stoneweg was advised by Deutsche Bank, and fought off interest from Asian and European groups to secure the Cromwell unit. In addition to receiving the sale proceeds, Cromwell will lower its gearing to about 25 per cent.
More importantly, it will exit offshore operations completely to focus solely on Australia and New Zealand. It would be interesting to see if the shift towards a more simplified business sets off a selldown on its register.
In particular, banks would be gauging industrial property player ESR’s interest in chipping away at its 30 per cent stake in Cromwell Property Group. ESR, which has its roots in industrial property and logistics, recently received a takeover bid from Starwood Capital after the bidder picked up a 10.7 per cent stake in March.
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