“The move does not come as a surprise to us and is mainly on the back of Cromwell’s plan to lighten its balance sheet and focus on the core Australian real estate market. The sale was done via a bidding process with Stoneweg emerging as the winner among several bidders. The transaction is subject to regulatory approvals and is expected to be completed by 3Q2024,” writes Natarajan.
RHB Bank Singapore analyst Vijay Natarajan has kept his “buy” call and target price of EUR2.05 ($3) on Cromwell European REIT. Natarajan’s report dated May 27 comes after the REIT announced that its sponsor, Cromwell Property Group, sold its entire stake to the Stoneweg Group.
The consideration for Cromwell Property Group’s 27.79% stake was EUR280 million, or EUR1.52 per share, which is at a 7% premium to the REIT’s three-month volume-weighted average price (VWAP). Stoneweg is a Swiss headquartered real estate manager and advisory group that was established in 2015.
