Geneva-based investment group Stoneweg has acquired the management rights and interests in Cromwell European fund management platform and associated co-investments for €280m.
As part of the transaction, the Swiss investor will acquire Cromwell’s 27.79% stake in Singapore listed Cromwell European Real Estate Investment Trust (CEREIT), which has a €2.2bn portfolio comprising over 100 properties in Europe.
Brisbane-based Cromwell will also sell its 100% interest in Cromwell European Holdings and its interest in the Cromwell Italy Urban Logistics Fund was part of the deal.
But Cromwell said the assets of the Cromwell Polish Retail Fund did not form part of the latest transaction as they were subject to a separate sale process.
Stoneweg which currently has €4bn of assets under management, said following the deal, the combined platform, operating as Stoneweg will have a combined managed assets of €8bn, comprising equity and debt investments in the European residential, light industrial, logistics, hospitality, office, and cultural and leisure sectors.
Jaume Sabater, Stoneweg founder and CEO, said: “This milestone transaction immediately creates a pan-European real estate asset management platform of scale and continues our strong track record of successful transactions to deliver value for our investors.
“It successfully brings together two highly complementary businesses with a shared conviction in the compelling structural, demographic and technological drivers underpinning select real estate asset classes in Europe.”
Sabater said the addition of the manager of the Singapore-listed CEREIT “extends our reach into Asia and those investors seeking exposure to high-quality and sustainable real estate assets across Europe”.
Cromwell’s CEO, Jonathan Callaghan said since December 2021, the group had divested A$1.6bn of non-core assets and investment positions locally and offshore.
“This journey has been an extended one due to the complexities involved in undertaking transactions across a number of countries and jurisdictions, with multiple hurdles to overcome.”
Simon Garing, CEREIT’s CEO who will continue running the listed vehicle, said: “CEREIT has grown from strength to strength since its listing in 2017. We recognise Stoneweg’s strong track record and established presence and focus on Europe.
“We believe the combined platform will have excellent on-the-ground asset and property management expertise and acquisition sourcing capabilities and contribute to the sustainable growth of CEREIT.”
CEREIT will remain listed in Singapore and will continue to execute the remaining asset sales to complete its €400m divestment programme to maintain net gearing below 40% and fund its future redevelopments.
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