Cromwell continues to sell non-core assets

Brisbane-based Cromwell Property Group has continued to execute its strategy aimed at selling non-core assets and transitioning to a capital light funds management business, with a $108.5 million sale of the 20-storey building that served as its head office.

The sale, which represented a premium to book value of 8.1% after settlement adjustments, saw its 200 Mary Street, Brisbane building to move in hands of private markets finance and investment house, Wingate, the company said in the announcement made to the Australian Securities Exchange (ASX).

Cromwell said it actively managed the asset since it acquired it from AMP in 2001 and the transaction demonstrated the business’ transition to capital light funds management firm and progressively opportunities to launch new funds.

The other sales of non-core assets included the recently completed sale of the Village Cinema Centre in Geelong for $19.775 million and the exchange of contracts on the TGA Complex in Symonston, expected to settle at the end of June, 2022.

This would result in combined, non-core asset sales in over $140 million of capital which would be used to reduce gearing prior to reinvestment in more strategically aligned initiatives.

Thee company also confirmed that it would remain headquartered at 200 Mary Street with its current lease in place until March 2024.