Cromwell sells out of Sydney's Northpoint Tower for A$300m
Cromwell Property Group has sold a 50% stake in a North Sydney office tower for A$300m (€186m) as it builds a war chest to target A$2bn in acquisitions and value-add development opportunities in Europe and Australia.
The sale of the stake in Northpoint Tower to its joint venture partner, Hong Kong-based Early Light International, ends the Australian group’s six-year ownership of the landmark building.
The Hong Kong investor bought a half stake in what is the tallest building in North Sydney for A$300m last August, and has now assumed full ownership following refurbishment.
Last week, Cromwell raised A$375m in an institutional placement and secured a three-year €225m syndicated debt facility.
The company said it had identified more than A$1bn of acquisition opportunities that were in either exclusive due diligence or advanced negotiations in Australia and overseas.
Cromwell will also use the freshly-raised capital to fund value-add developments, worth more than A$1bn.
Cromwell CIO Rob Percy said: “Cromwell continues to identify value-enhancing investment opportunities across both its indirect and direct property investment platforms.”
He added: “We will continue to recycle capital which, in conjunction with the placement, will allow us to accelerate execution of our ‘invest to manage’ strategy.”
Percy cited Northpoint Tower as a “great example” of what can be achieved.
Cromwell acquired the “very much unloved asset” for A$139m in 2013 and spent A$130m refurbishing the 1970s building. The redevelopment involved the addition of a 187-room hotel.