Queensland-based Cromwell Property Group have announced that will sell its entire shareholdings in Investa Office Fund for $4.65 per unit -- $276 million.
Cromwell Property Securities Limited, as responsible entity for the Cromwell Diversified Property Trust, purchased its 9.83% stake in IOF for $4.24 per unit on 12 April 2016.
Cromwell said it entered into an agreement to sell its long-held stake to the Investa Commercial Property Fund.
The agreed sale price of $4.65 per unit represents a premium to the IOF closing price on 3 October 2017 and a return of 18 per cent.
“The investment in IOF has been a profitable one for Cromwell,” Cromwell chief executive Paul Weightman said.
“We would have liked to have been able to complete a deal, but as I have said previously, it became obvious to us that a friendly transaction was unlikely to proceed, regardless of the price that we offered.
“Upon careful consideration of all of our options, we have therefore decided that the best way forward for Cromwell security holders is to realise the value in our investment.
“We will continue to focus on delivering value to our security holders through the different strategic initiatives that we are currently undertaking,” Weightman said.
The proceeds of the sale will be used to reduce gearing and for other general corporate purposes.
