Cromwell Property Group (ASX:CMW) has announced that Brookfield has entered into a binding agreement to acquire the remaining 19.9 per cent stake held by ESR in the listed property group. The transaction, first reported by the Australian Financial Review’s Street Talk column, saw Brookfield acquire the substantial stake at a price of 38 cents per share.
The acquisition price represents a 4.1 per cent premium to Cromwell’s closing share price on the previous Friday. Goldman Sachs’ investment banking team played a key role in facilitating the transaction. Cromwell Property Group is a real estate investment manager with operations in Australia and Europe. The company provides investment and property management services.
Following the announcement of the deal, Cromwell Property Group’s shares experienced a notable increase. On Monday, shares in Cromwell surged by 5.5 per cent, reflecting positive market sentiment towards the acquisition by Brookfield.
The acquisition is a further indication of Brookfield’s confidence in the Australian property market and Cromwell’s portfolio. It is expected that the purchase will be completed in the near future, subject to customary closing conditions.
