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 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.