Cromwell Property Group has entered conditional agreements with Straits Real Estate to acquire a 19.9 per cent interest in Straits Real Estate’s Australian industrial portfolio. The portfolio is valued at $470 million, with Cromwell’s investment totalling approximately $47.6 million. Cromwell Property Group is a real estate investment manager that owns, manages and invests in property across Australia and Europe. Straits Real Estate is a wholly-owned subsidiary of The Straits Trading Company.
As part of the transaction, Cromwell will also acquire the portfolio’s existing management platform through the purchase of Terre Property Partners (TPP) for an initial purchase price of $2 million. The agreement includes potential deferred consideration based on the platform’s future performance. This acquisition is aligned with Cromwell’s strategy to expand its assets under management (AUM).
The transaction is structured in two phases. The first phase, anticipated to be completed by December 31, involves acquiring the 19.9 per cent stake in the industrial portfolio and the purchase of the Terre Property Partners platform. Phase two will involve a recapitalisation of the seed portfolio. This process will commence shortly after phase one and is expected to be completed within this financial year.
The acquisitions will increase Cromwell’s assets under management by approximately $540 million and provide further opportunities for portfolio growth, according to the company. The company believes this marks a significant step forward in executing Cromwell’s strategy to grow its assets under management.
