Cromwell to acquire Orchard
|
|
Publicly listed investment group Cromwell has entered into an exclusive due diligence arrangement to acquire Orchard Funds Management.
Cromwell has announced to the Australian Securities Exchange (ASX) that it has entered into the due diligence period with a view to acquiring Orchard’s funds, including the $960-million Orchard Diversified Property Fund.
However, it said the acquisition would not include Orchard’s Primary Infrastructure Fund or the Essential Health Care Fund.
Commenting on the acquisition move, Cromwell chief executive Paul Weightman said the transaction, if it proceeded, would substantially expand Cromwell Group’s existing property funds management business.
He said that if Cromwell assumed management of the funds, it would look to undertake a combination of asset sales, either externally or into new Cromwell managed funds, coupled with further capital raisings in existing Orchard funds once asset values and funds were stabilised.
The ASX announcement said the transaction involved a payment of $15 million for management rights plus a further three-year earn-out amount to be determined.
AUTHOR
Mike Taylor
Recommended for you
Retail investment into private credit funds could surpass that of sophisticated investors, according to ASIC, but the regulator admits it is unsure how and where these individuals are first being introduced to the vehicles.
With the high cost of advice keeping young Australians locked out of advice, a fintech provider has said digital advice is key for licensees to capture this unadvised demographic.
ASIC chair Joe Longo has announced he will step down at the end of his term, departing the corporate regulator in May 2026.
When it comes to the phase-out of AT1 bonds, Schroders fixed income manager Helen Mason has urged financial advisers to sell up sooner rather than later or risk capital losses.
