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CROMWELL PROPERTY GROUP — Capital/Financing Update 2013
Nov 27, 2013
64673_rns_2013-11-27_bdeb4ddf-9a33-4293-bb3d-96ecf607a73c.pdf
Capital/Financing Update
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ASX Announcement
28 November 2013
CROMWELL SELLS TWO ASSETS FOR $154 MILLION
Cromwell Property Group (ASX: CMW) has exchanged unconditional contracts for the sale of the office property at 380-390 LaTrobe Street, Melbourne and the HomeBase bulky goods centre at Prospect to separate purchasers for a total of $154 million.
CEO Paul Weightman said, “the disposals are consistent with our portfolio management strategy. Cromwell will look to redeploy the sale proceeds over time for balance sheet acquisitions or to support new product offerings by our funds management business.
“We continue to seek acquisition opportunities which complement our investment strategy and existing portfolio and to recycle capital employed in smaller non-core assets”, Mr Weightman said.
The LaTrobe Street property is an 18 level A-grade office complex with 21,961 sqm of office accommodation. The asset was sold for $113.6 million, which approximates the book value. The asset was originally acquired in December 2005 for $88 million.
Settlement of the LaTrobe Street property is scheduled for 29 November 2013. The sale was negotiated by CBRE and Colliers International.
The HomeBase property is located approximately 30km west of Sydney’s CBD adjacent to the M4 motorway and is within the suburb of Prospect with a main frontage to Stoddart Road. The asset was sold for $40.45 million, which represents a premium of approximately 9.6% to book value. The asset was acquired for $38.5 million in October 2012. It was acquired as part of a portfolio of 5 assets when the unlisted Cromwell Property Fund was merged with Cromwell.
Settlement of the HomeBase property is scheduled for 20 December 2013. The sale was negotiated by CBRE.
Following the sale of the properties, Cromwell’s portfolio will comprise a total of 31 properties valued at approximately $2.2 billion.
ENDS.
Media Enquiries: Cromwell Securityholder Enquiries: Paul Weightman Investor Service Centre Managing Director/CEO 1300 276 693 +61 411 111 028 [email protected] [email protected]
Cromwell Property Group (ASX:CMW) comprising Cromwell Corporation Limited (ABN 44 001 056 980) and Cromwell Property Securities Limited (ABN 11 079 147 809 AFSL 238052) as responsible entity for Cromwell Diversified Property Trust (ABN 30 074 537 051 ARSN 102 982 598). Further information and media releases can be found at the Cromwell website: www.cromwell.com.au