Redefine Properties seized the opportunity to increase its direct holding in Australian listed Cromwell Property Group this week by taking up Aus$65.6 million of Cromwell’s capital raise, which will partly fund Cromwell’s successful acquisition of a portfolio of government properties
Marc Wainer, CEO of Redefine, says: “It’s our stated intention to deepen our presence in Australia. This take up of capital grows Redefine’s interest in Cromwell from 10% to 12,5%.”
Cromwell has acquired an Aus$405 million portfolio of seven office properties from the New South Wales government in Australia. It raised Aus$250 million in capital to fund a portion of the transaction.
Three of the properties acquired are in Sydney CBD, including the A-grade Symantec House and B-grade McKell Building and Bligh House. The remaining four buildings are all regional assets in NSW. The acquisition boosts Cromwell’s investment property portfolio to around Aus$2.3 billion.
“This attractive portfolio includes five properties that have 15-year leases with the New South Wales government. Of the remaining two, one has a five-year lease in place and the other is a multitenant building. Properties of this quality are achieving a 9% yield in Australia. This highlights how expensive comparable properties are becoming in South Africa,” adds Wainer.