Linklaters has advised Cromwell Property Group on the sale of its €3.9bn European fund management platform and associated co-investments to Swiss real estate investor Stoneweg for €280m.
As part of the deal, Stoneweg is buying Cromwell’s entire 27.79% stake or 156,233,700 units in the SGX listed Cromwell European REIT (CREIT) (€1.52/unit, representing 7.3% premium to the three-month VWAP1), Cromwell’s 100% interest in the Singapore Manager of CEREIT, Cromwell’s 100% interest in Cromwell European Holdings Limited (the property manager of CEREIT, which employs over 200 staff in 14 offices across 12 countries in Europe, including countries in which CEREIT assets are located) and other associated co-investments.
The transaction continues the Cromwell Group’s strategy to simplify the business and transition to a capital-light fund management model, through the sale of non-core assets and realigning to Cromwell’s core competencies in Australia and New Zealand. They will continue to manage $4.8bn of assets in Australia and New Zealand, including a portfolio of high-quality assets in Australia, and will focus future efforts on growing its Australian and New Zealand funds management platform.
The Linklaters team was led by Private Equity Real Estate Partners Tom Watkins and Matthew Plaskow, supported by associate Ankita Sodha. Tax partner Alexei Franks advised on Tax matters.
