UK REIT Redefine International has scaled back its investment in Australian REIT Cromwell to place greater emphasis on investment in the UK and German markets.
UK REIT Redefine International has scaled back its investment in Australian REIT Cromwell to place greater emphasis on investment in the UK and German markets.
The company has disposed of 54.24 million Cromwell securities at a 0.8% premium on the 30 day volume-weighted average price for a total of A$54.48 mln (€40 mln). The share sale deduced Redefine's holding in Cromwell from 13% to 9%.
'Back in 2008-2009 we supported Cromwell, a listed company in Australia but we expect to recycle this capital back into the UK and Germany in the future,' Deputy CEO Stephen Oakenfull recently told PropertyEU.
The proceeds will be used to strengthen the company’s cash position and for general investment purposes.
Redefine International is working to take full ownership of a portfolio of seven budget hotels in the UK, according to Oakenfull. 'We have agreed terms to acquire 100%. We like London budget hotels for their cash generative operations and stable occupancies, but as an asset class they are difficult to access,' Oakenfull noted. The hotel portfolio consists of six London based Holiday Inn-franchised hotels and one Crowne Plaza hotel located in Reading.
With a market cap of around £650 mln, Redefine International is listed in London and Johannesburg, and counts institutional investors such as AXA, M&G, and Henderson Global Investors among its shareholders. The company has a diversified portfolio of assets in the UK, Germany and Australia valued at £1 bn.
