Cromwell Property Group identify $1 billion worth of growth opportunities

Cromwell Property Group identify $1 billion worth of growth opportunities
Cromwell Property Group identify $1 billion worth of growth opportunities

Brisbane-based fund manager Cromwell Property Group are set to purse over $1 billion worth of strategic growth opportunities across Australia and Europe.

Cromwell have announced an underwritten $375 million institutional placement at a fixed issue price of $1.15 per new security.

They have identified a number of strategic growth opportunities across both its indirect and direct property investment segments.

The opportunities will be funded with proceeds from the equity raising, recycling of existing capital and introduction of new capital partners.

The proceeds, along with recycled capital from asset sales, will provide funding for over $1 billion of value-add development opportunities across Cromwell’s existing Australian Core+ and Active real estate portfolio.

Cromwell CEO Paul Weightman said: "Cromwell continues to identify value enhancing investment opportunities across both its Indirect and Direct Property Investments that will deliver significant medium term growth in enterprise value for Cromwell and realise significant capital returns for securityholders.

"The Equity Raising will provide certainty of funding to pursue these opportunities, strengthen the balance sheet and allow for growth in distributions.”

“Cromwell has identified over $0.5 billion of high quality Australian core office opportunities and over $0.5 billion of office and retail opportunities in Europe which are ideally suited to our ‘Invest to Manage’ strategy.

"The warehousing of these opportunities will allow us to seed new funds, co-invest alongside our global capital partners and accelerate growth of assets under management (AUM).”

“Finally, Cromwell will also look to use the proceeds from the Equity Raising along with recycled capital from asset sales and sell down of new funds to deliver over $1.0 billion of accretive value add development opportunities across the existing Australian balance sheet portfolio.”

Cromwell have reaffirmed the FY19 guidance of operating profit of no less than 8.00 cps and distributions of 7.25 cps2.

The guidance for FY20 operating profit is expected to be great, a guide of 8.1 – 8.3 cps and distributions of not less than 7.5 cps3
 
 
 
 
 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Fund Raising Cromwell Property Group

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