CROMWELL RAISES $193 MILLION

Written on the 30 May 2013

CROMWELL RAISES $193 MILLION

CROMWELL Property Group (ASX: CMW) has raised $193 million through the institutional component of its capital raising venture.

The retail offer is expected to raise a further $57 million and opens on May 31.

The cash will partly fund the $405 million purchase of seven Sydney office assets from the New South Wales Government and to pay down debt.

Cromwell CEO, Paul Weightman (pictured) says the success of the capital raising is a vote of confidence in the company.

“We are delighted by the robust and continuing support demonstrated by Cromwell's existing institutional security holders and welcome a number of new institutional investors to Cromwell's register. We consider their support a strong endorsement of Cromwell's disciplined and highly successful investment strategy,” says Wiseman in a statement to the ASX.

The portfolio comprises three Sydney CBD assets ($316m) and four regional NSW assets ($89m). It boasts a 9.0 per cent yield with an overall weighted average lease expiry of 10 years. Settlement is expected in June. CMW’s investment portfolio increases to $2.3 billion with the acquisition.

“The acquisition of the NSW Portfolio is consistent with our strategy of providing secure, steadily growing distributions to investors through the management of a portfolio of high quality assets with a long weighted average lease expiry,” says Weightman.

The new shares will be issued at $1 and rank equally with existing CWM stapled securities and will have full entitlement to the June 2013 quarterly distribution. Settlement of the institutional offer is expected on Friday, June 7 and the new securities will hit the market on June 11.

The equity raising was underwritten by Merrill Lynch Equities (Australia) Limited and RBS Morgans Corporate Limited.

The Retail Entitlement Offer is expected to raise a further $57 million and is fully underwritten. It will be open from Friday, May 31 to 5.00pm (AEST) Monday, June 17.


Latest News

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as Cyclone Debbie makes landfall ...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter