Cromwell Property Group makes $170m placement

Company News

by Kathy Skantzos

Global real estate investment manager Cromwell Property Group (ASX:CMW) has announced a $170 million strategic placement to Singapore Stock Exchange (SGX)-listed property development business SingHaiyi Group and investors Haiyi Holdings.

The entities are associated with cornerstone investors in the Cromwell European REIT which was listed on the Singapore Stock Exchange (SGX) on 30 November 2017. The investors are well known global real estate investors Mr and Mrs Tang.

Proceeds from the placement will be used to repay short term debt associated with Cromwell’s investment in Cromwell European REIT, as well as for general corporate purposes including portfolio investment opportunities.

Cromwell CEO Paul Weightman said the company will likely give shareholders the opportunity to participate in a share purchase plan in Q1 2018.

Approximately 175 million new securities will be issued under the placement at 97 cents a share.

Shares in Cromwell Property Group (ASX:CMW) closed 0.49 per cent lower to $1.02.