Redefine International sells Cromwell shares at a profit

Posted On Thursday, 04 April 2013 10:37 Published by eProp Commercial Property News
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Redefine Properties International (RIN) has sold 84.5-million securities in Cromwell Property Group to reduce its stake in the Australian company from 22.01% to 16.22%.

Michael Watters The net profit attributable to the sale amounts to approximately A$18.7m‚ the proceeds of which will be used to further strengthen the company’s cash position and for general investment purposes. 

Redefine Properties International CEO Mike Watters said the partial disposal was "in line with our objective of recycling our capital".

The sale would enable the group to take advantage of new investment opportunities that "support our income-focused strategy", Mr Watters said.

Redefine International disposed of 84.5-million securities in Cromwell, its associate company held through Redefine International's 100% held subsidiary, Redefine Australian Investments.

Cromwell consists of the Cromwell Diversified Property Trust and Cromwell Corporation.

The securities were sold on the Australian Stock Exchange at prices ranging from A$90c to A$96.53c, for which Redefine International received a total consideration of A$76.2m.

Following the transaction, Redefine International's holding in Cromwell will reduce from 22.01% to 16.22%.

The proceeds of the net profit attributable to the sale of A$18.7m "will be used to further strengthen the company's cash position and for general investment purposes", the company said.

Suitable opportunities were being considered.

Redefine International said it would continue to support Cromwell's management team at both equity and board levels.

Mr Watters said the group had achieved "excellent returns" from the investment in Cromwell and would "remain a committed long-term investor to both Cromwell and the Australian property market".

Redefine Properties International was listed on the JSE in 2010, and holds as its sole asset a majority stake in Redefine International, whose portfolio is made up of investments across the UK, Germany, Switzerland, Holland and Australia.

Last modified on Friday, 18 April 2014 10:05

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