Stoneweg has entered into a binding agreement with Cromwell Property Group (Cromwell) to acquire Cromwell’s European fund management platform and associated co-investments, which totals €3.9b of real estate assets under management, for a total consideration of €280m, subject to closing adjustments and regulatory approvals.
Under the terms of the transaction, Stoneweg is acquiring Cromwell’s:
- 100% interest in Cromwell Europe Limited;
- 27.8% unitholding in CEREIT, a real estate investment trust listed in Singapore with a €2.2 billion portfolio;
- 100% interest in the Singapore-based Manager of CEREIT; and
- 50% interest in the Cromwell Urban Italy Logistics Fund
The combined platform will continue to operate as Stoneweg. The enlarged group will manage c. €8b of assets, providing equity and debt investment and development expertise in the residential, light industrial, logistics, hospitality, office, and cultural and leisure sectors across 15 European countries.
Stoneweg Founder & CEO, Jaume Sabater, commented: “This milestone transaction immediately creates a pan-European real estate asset management platform of scale and continues our strong track record of successful transactions to deliver value for our investors. It successfully brings together two highly complementary businesses with a shared conviction in the compelling structural, demographic and technological drivers underpinning select real estate asset classes in Europe. Leveraging the respective businesses’ deep operational real estate investment and development expertise, the transaction establishes Stoneweg across all of Europe’s major geographies, enabling us to accelerate our market share ambitions and follow through on our convictions at what is a compelling point in the cycle.”
Max-Herve George, Founder & CEO of Icona Capital, commented: “Icona joined Stoneweg as a strategic shareholder and investor in 2022, with a clear target to grow the business into a leading global real estate player. In this context, Icona is very happy to have participated in this major transaction, which provides the platform for Stoneweg and Icona to achieve their goal, strengthening both their market presence and partnership.”
Jonathan Callaghan, CEO of Cromwell Property Group, commented: “I strongly believe that Stoneweg is an excellent match with very little overlap in terms of geographic and asset class focus, and I take this opportunity to thank all staff who have participated in this exercise, especially those joining Stoneweg as part of this transaction.”
The Transaction remains subject to customary closing conditions and adjustments, including approval by the Monetary Authority of Singapore and the Commission de Surveillance du Secteur Financier in Luxembourg as well as debt change of control consents or waivers. Completion is expected to occur in the forthcoming months.
Swiss Bank and Stoneweg’s shareholder, CBH Compagnie Bancaire Helvetique SA acted as financial fdvisors to the buyer for the transaction.
Image provided by FTI Consulting.
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