Cromwell Property Group sells Investa holding for $276m

Company News

by Jessica Amir

Cromwell Property Group (ASX:CMW), the real estate investment manager, has agreed to sell its entire stake in Investa Office Fund (ASX:IOF) for $276 million at $4.65 per unit. The holding was bought by Investa's Property Group.

Cromwell’s property trust initially snapped up the 9.83 per cent stake in Investa for $4.24 per unit on 12 April 2016.

Cromwell says it recognised a 18 per cent internal rate of return on the sale and will use the sale proceeds to reduce its gearing.

The company added that it wanted to complete a friendly deal but that was unlikely, regardless of the price the Cromwell offered.

Shares in Cromwell Property Group (ASX:CMW) are trading flat at 96 cents.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.