Cromwell buys into Straits industrial portfolio
ASX listed Cromwell has bought a 19.9 per cent stake in Straits Real Estate’s Australian industrial portfolio.
The $47.6 million deal prices the seven assets at $470m.
Cromwell will also take over management via platform Terre Property Partners.
This component is costing $2m upfront with potential deferred performance-based payments.
Straits switches partner
Five of the properties are in Adelaide – at Mawson Lakes, Port Adelaide, Salisbury and Salisbury South.
The others are in Melbourne, at Bayswater (pictured, top) and Mulgrave.
All form part of established logistics precincts.
Tenants include Coca ColaEuropacific Partners, Incitec Pivot and Wengfu.
Singapore based Straits bought some of the properties as the majority owner in an 80:20 partnership with Commercial & General.
The Cromwell deal will take place in two stages: phase one, due by December 31, 2025, covers the portfolio interest and TPP purchase.
The second phrase is recapitalising the portfolio.
“The acquisition supports the group’s shift to a capital light investment model, expanding its assets under management [it estimates, by $540m] and bringing in an experienced management team,” Cromwell chief executive, Jonathan Callaghan, said.
Singapore based Straits intends to stay on as co-investor.
Subscribe to our newsletter at the bottom of this page.
