Cromwell sells Polish retail fund for $465 million
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The news: Cromwell Property Group has sold six retail centres across Poland to Prague-based Star Capital Finance as part of efforts to simplify its portfolio.
The numbers: The six centres, held under the Cromwell Polish Retail Fund, were sold to Star for €285 million ($465 million). The sale proceeds will initially be used to repay debt, reducing headline gearing to about 35%.
Cromwell shares have lost more than 31% of its value over the last 12 months and closed at 39 cents each on Wednesday.
The context: Cromwell said the sale aligns with its strategy to simplify the group by divesting non-core investments. It follows the sale of Cromwell's 50% share in a joint venture retail asset in Ursynów, Poland, for $69 million in February and takes total asset sales completed since late 2021 to $1.1 billion.
The real estate investor has been conducting asset sales to cut down on its debt amid a challenging operating environment as higher interest rates have crimped valuations. The group widened its first-half loss on the back of a decline in property valuations.
The source: ASX announcement
