CROMWELL PROPERTY GROUP — Capital/Financing Update 2019

Oct 27, 2019

ASX Announcement 26 October 2019

==> picture [125 x 43] intentionally omitted <==

CROMWELL CONFIRMS ACQUISITION OF THIRD PARTY INVESTOR INTERESTS IN CROMWELL POLISH RETAIL FUND

Real estate investor and manager Cromwell Property Group (ASX:CMW) (Cromwell) has today confirmed it has signed formal binding agreements to acquire all third party investor interests in the Cromwell Polish Retail Fund (CPRF) as part of its ‘Invest to Manage’ strategy.

The ‘Invest to Manage’ strategy involves investing capital to acquire or improve assets, and then creating new funds to attract investment from capital partners. Cromwell will then typically hold a coinvestment stake in each fund, manage the assets and recycle the capital into new initiatives.

CPRF contains seven catchment-dominating shopping centres with a Gross Asset Value of approximately €600 million (A$1 billion). The centres have an occupancy rate of 96.3% and a weighted average lease term (WALT) of 5.1 years.

Cromwell’s Polish team has been managing and developing the assets for over a decade. In August 2019, Cromwell opened the newest section of Janki Shopping Centre in Warsaw, following the completion of a major €65 million (A$110 million) refurbishment which added gross lettable area of 21,000 square metres (sqm).

Poland has been Europe’s fastest growing economy over the past five years, with Gross Domestic Product growth of 4.5% in the 12 months to 30 June 2019. It also has one of the highest expected growths in disposable income, consumer spending and retail sales globally.

Cromwell Chief Executive Officer, Paul Weightman, commented, “Poland is Europe’s success story. It is a market we know well and are very positive about. We have 34 real estate professionals on the ground, managing 21 assets with more than 660 tenant customers and over 758,000 sqm of space.”

“We will rollover the acquired interests into a new fund which will be offered to capital partners,” Mr Weightman concluded.

Completion of the transaction is expected in early November 2019.

Ends.

Media Enquiries:

Honner Media Paul Cheal / Jessica Effeney +61 (0) 427 755 296 / +61 (0) 400 998 373 paul@honner.com.au / jessica@honner.com.au

ABOUT CROMWELL PROPERTY GROUP

Cromwell Property Group (ASX:CMW) is a Real Estate Investor and Manager with operations on three continents and a global investor base. The Group is included in the S&P/ASX200. As at 30 June 2019, Cromwell had a market capitalisation of $3.0 billion, a direct property investment portfolio in Australia valued at $2.5 billion and total assets under management of $11.9 billion across Australia, New Zealand and Europe.

==> picture [596 x 56] intentionally omitted <==