Cromwell Property has formed a joint venture with Straits Real Estate (SRE) to acquire a 19.9% interest in SRE’s Australian industrial portfolio for around A$47.6m (€26.9m).
Cromwell will also acquire the A$470m portfolio’s existing management platform through the purchase of Terre Property Partners (TPP).
The portfolio comprises seven quality industrial assets located across logistics hubs in Victoria and South Australia.
The transaction marks a significant step forward in executing Cromwell’s stated strategy to grow assets under management (AUM), adding approximately A$540m in AUM, with scope for further portfolio expansion, according to Cromwell.
Jonathan Callaghan, CEO of Cromwell Property, said: “By expanding our AUM, integrating a proven management team and partnering with an institutional investor of Straits Trading’s calibre, we’re strengthening our platform and creating new opportunities to partner with capital providers in sectors where we see long-term value.”
Chew Gek Khim, executive chairman of Straits Trading, said: “This strategic partnership marks an important milestone in our continued focus on optimising our industrial and logistics portfolio. Cromwell’s established presence and deep operational capabilities in Australia will augment our platform and position us for long-term value creation.”
Mark Brammy, CEO, and Mark Pettman, COO of Terre Property Partners, said: “We’ve built deep expertise across the national industrial sector and have a proven track record in developing and repositioning value-add opportunities into prime grade institutional product.
“Cromwell’s strategic acquisition of Terre Property Partners makes us well placed to continue delivering performance and scale, while contributing to the growth of a leading investment management.”
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