SYDNEY — Cromwell Property Group (ASX:CMW) said on Tuesday it has entered into conditional agreements to acquire a 19.9% stake in Straits Real Estate’s Australian industrial portfolio valued at AUD 470 million, as part of a strategic push to expand its assets under management (AUM).
The deal includes the purchase of the portfolio’s management platform, Terre Property Partners (TPP), for an initial AUD 2 million, with potential deferred payments tied to performance. Cromwell said the transaction would add approximately AUD 540 million to its AUM, with scope for further expansion.
The seed portfolio comprises seven industrial assets across logistics hubs in Victoria and South Australia, leased to tenants including Coca Cola Europacific Partners, Incitec Pivot and Wengfu. Cromwell said the assets offer scale and geographic diversification, with locations in Bayswater, Salisbury South and Port Adelaide.
The transaction will be executed in two phases, with the first—covering the 19.9% stake and TPP acquisition—expected to settle by Dec. 31, 2025. Phase two will involve recapitalisation and capital raising during FY2026, with Straits Real Estate retaining an investment position.
“This initiative reflects our continued progress in repositioning Cromwell as a capital-light, investment manager,” CEO Jonathan Callaghan said. “By expanding our AUM and integrating a proven management team, we’re strengthening our platform and creating new opportunities.”
TPP’s leadership, including CEO Mark Brammy and COO Mark Pettman, will join Cromwell’s platform, bringing expertise in industrial asset repositioning and value-add strategies.
Cromwell reaffirmed its FY26 distribution guidance of 3.0 cents per security, noting no immediate material impact on earnings.