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Cromwell Property Group (ASX: CMW) is acquiring a 19.9 per cent stake in a $470 million Australian industrial property portfolio controlled by Singapore-listed conglomerate The Straits Trading Company Limited to seed a new portfolio that the Brisbane-based group plans to recapitalise and grow.
The deal, worth about $47.6 million, is accompanied by the acquisition of Adelaide-based investment manager Terre Property Partners for $2 million which will deliver Cromwell control of the portfolio’s existing management platform.
Cromwell says the acquisitions are a major step towards its strategy of growing assets under management, with the deal adding about $540 million to its existing portfolio which was worth $2.1 billion at the end of June this year.
The portfolio acquired from Straits Trading Company comprises seven industrial assets in key logistics hubs in Victoria and South Australia, leased to blue-chip tenants such as Coca Cola Europacific Partners, Incitec Pivot and Wengfu.
Cromwell says the assets are strategically positioned within established precincts such as Bayswater, Salisbury South and Port Adelaide, contributing “meaningful scale and geographic diversification” to Cromwell’s portfolio.
The Terre Property Partners team will operate as part of Cromwell’s platform, which the investment group says brings “deep sector expertise, a strong track record and a highly experienced team with intimate knowledge of the portfolio”.
“We’re excited to join Cromwell’s platform and contribute to the next phase of growth,” say Terre Property Partners’ CEO Mark Brammy and COO Mark Pettman in a joint statement.
“We’ve built deep expertise across the national industrial sector and have a proven track record in developing and repositioning value add opportunities into prime grade institutional product.
“Cromwell’s strategic acquisition of Terre Property Partners, makes us well placed to continue delivering performance and scale, while contributing to the growth of a leading investment management business.”
The acquisition will be undertaken in two phases, with the first expected to settle by 31 December 2025 involving the acquisition of the 19.9 per cent interest in the seed portfolio and the purchase of the Terre Property Partners platform.
The second will involve a recapitalisation of the seed portfolio to be completed in FY26 to fund future growth.
“This initiative reflects our continued progress in repositioning Cromwell as a capital-light investment manager,” says Jonathan Callaghan, CEO of Cromwell Property Group.
“By expanding our assets under management, integrating a proven management team and partnering with an institutional investor of Straits Trading’s calibre, we’re strengthening our platform and creating new opportunities to partner with capital providers in sectors where we see long-term value.”
Straits Real Estate Pte Ltd, The Straits Trading Company subsidiary selling the portfolio to Cromwell, plans to remain an investor in the portfolio.
“This strategic partnership marks an important milestone in our continued focus on optimising our industrial and logistics portfolio,” says Chew Gek Khim, executive chair of Straits Trading.
“Cromwell’s established presence and deep operational capabilities in Australia will augment our platform and position us for long-term value creation.”
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