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 is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.