Cromwell Property Group, sponsor of Cromwell European REIT, has sold its entire 27.79% stake, the REIT manager and property manager to the Stoneweg Group for €280 million ($409.34 million).
Stoneweg is described as a pan-European and US asset management platform now with €4 billion in AUM consisting of various real estate classes.
CEREIT will remain listed on the Singapore Exchange S68 and does not expect changes to its independent directors and management team.
It too remains "committed" to its objectives of providing CEREIT unitholders with stable and growing distributions and NAV per unit over the long term.
"Stoneweg and our investors are attracted to the quality of CEREIT’s pan-European portfolio and the high risk-adjusted returns for all Unitholders that we believe may be generated under our sponsorship," says Stoneweg’s founder and CEO, Jaume Sabater.
"We believe our credentials, track record and our deep-rooted European capital and other stakeholder relationships, coupled with enhanced capabilities from the acquisition of Cromwell’s European platform, will allow us to add value to CEREIT," he adds.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
"We look forward to leveraging Stoneweg’s expertise and capabilities, which will enhance Cromwell’s existing European platform," says Simon Garing, CEO of the REIT manager.
"We believe the combined platform will have excellent on-the-ground asset and property management expertise and acquisition sourcing capabilities and contribute to the sustainable growth of CEREIT," he adds.
CEREIT closed at €1.48 on May 21, down 1.33%.
