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.