Stoneweg takes over European fund platform
With the purchase of Cromwell Europe Limited and other vehicles, Stoneweg doubles its assets under management in real estate to eight billion euros.
The Geneva-based real estate investment group Stoneweg has signed an agreement with Cromwell Property Group to acquire Cromwell's European fund management platform and the associated co-investments. The transaction relates to real estate assets under management of EUR 3.9 billion and the purchase price for the platform is EUR 280 million. The Australian Cromwell justifies the sale with a reduction in its debt capitalization. In total, it divested parts of the company with a volume of AUD 1.6 billion as part of several transactions.
Transaction includes shares in Italian logistics fund
The transaction includes 100 % of shares in Cromwell Europe Limited, 27.8 % of shares in Singapore-listed real estate investment trust Cereit with a portfolio of €2.2 billion, 100 % of shares in Singapore-based Cereit Manager and 50 % of shares in Cromwell Urban Italy Logistics Fund. In total, Cromwell's European platform reportedly comprises more than 160 assets and 1,600 tenants across 14 local offices in 12 European countries in a mix of core, core+ and value-add funds and mandates.
"The transformative transaction will build on the strengths and strong track record of Stoneweg and Cromwell Europe to create a leading European real estate company with diverse and substantial capital relationships and product offerings," said Stoneweg. The enlarged group will operate under the Stoneweg name and will be led by Stoneweg co-founders Jaume Sabater (CEO) and Joaquin Castellvi (Head of Acquisitions) and Icona founder Max-Hervé George as a strategic shareholder. The spectrum includes equity and debt investments as well as development expertise in the residential, light industrial, logistics, hospitality, office, cultural and leisure sectors in 15 European countries.
"Increased reach in Asia"
To date, Stoneweg has managed assets of around EUR 4 billion and has around 140 employees at seven locations in Europe and the USA. Since its foundation in 2015, the company says it has completed over 375 transactions worth around 6.2 billion euros. Most recently, the range of services was expanded to include hospitality. "The addition of Singapore-listed Cromwell European REIT Manager and our co-investment expands our reach in Asia and to those investors seeking exposure to high quality and sustainable real estate investments across Europe," says Sabater.
The Swiss bank and Stoneweg shareholder CBH Compagnie Bancaire Helvétique SA acted as financial advisor to the buyer for the transaction. (aw)
