Cromwell sells stake in Northpoint Tower for $300 million

Cromwell Property Group has sold its stake in Northpoint Tower to Early Light International, who will acquire a full ownership interest in the building.

Cromwell sold its 50% stake in the North Sydney tower for $300 million.

It had acquired its stake in the building for $139.35 million in December 2013.

The Hong Kong-based Early Light purchased the other 50% stake from Redefine Properties in August 2018.

The 44-level, mixed-use tower was originally constructed in 1977 and underwent a $130 million redevelopment that started in January 2016 and was completed in March 2018.

The lower level of the precinct focuses on convenience retail, while the upper level is dedicated to dining and leisure, inclusive of a rooftop bar.

There is also an eight-storey, 187-room Vibe Hotel.

Cromwell’s Chief Investment Officer, Rob Percy, said its sale of its remaining interest in Northpoint will provide certainty of funding for over $1.0 billion of acquisition opportunities.

“We will continue to recycle capital which, in conjunction with the placement, will allow us to accelerate the execution of our ‘Invest to Manage’ strategy,” Percy said.

“Northpoint Tower is a great example of what we can achieve, identifying and realising value in what was very much an unloved asset.

“We are delighted to have had the opportunity to partner with Early Light and know the asset is in good hands for the future.”

The sale is subject to FIRB approval and is expected to settle in mid-September 2019.