Cromwell exits Europe

Property funds management business, Cromwell Property Group, has sold its European fund management platform business vowing to focus more squarely on Australia.

The company announced to the Australian Securities Exchange (ASX) that it had entered into a binding agreement to sell the European business and associated co-investments for $457 million to Swiss-based multi-strategy real estate invdestment manager, Stoneweg SA Group.

The ASX announcement said the transaction covers all components of Cromwell’s European business noting that the assets of the Cromwell Polish Retail Fund had been the subject of a separate sale completed on 15 May, in Europe.

Commenting on the move, Cromwell chair, Dr Gary Weiss described it as a turning point for the company to focus on driving value from its local assets and funds management business.

“In the current environment, numerous options were considered to simplify and de-risk the business, and we believe this transaction will provide the debt reduction and working capital needed to move forward,” he said.

Cromwell chief executive, Jonathan Callaghan said that since December, 2021, the firm had divested $1.6 billion in non-core assets and investments positions locally and offshore.