Cromwell announces $170m placement
Cromwell Property Group has announced a $170 million strategic placement to SingHaiyi Group and Haiyi Holdings, the entities associated with Gordon and Celine Tang who are cornerstone investors in the Cromwell European REIT (CEREIT).
According to the company, proceeds from the strategic placement would be used to repay short term debt associated with Cromwell’s investment in CEREIT and for general corporate purposes including investment in value adding opportunities in the portfolio and potential acquisition opportunities.
CEREIT and the strategic placement were transformative transactions that would position Cromwell to capitalise on future growth opportunities, the company said.
Approximately 175 million new Cromwell stapled securities (new securities) would be issued under the strategic placement at an issue of $0.9691 per new security, with the issue price representing a 4.9 per cent discount to the 30 day VWAP of $1.02 to 8 December, 2017.
Cromwell’s chief executive, Paul Weightman said: “We are also committed to ensuring our retail securityholders are given the opportunity to participate in the transformation of our global funds platform on similar terms, and expect to offer a security purchase plan to eligible Cromwell securityholders in Q1 2018.
“Mr Gordon Tang and Mrs Celine Tang’s investment in Cromwell, following on from their cornerstone stake in CEREIT, signals a strong belief in our platform, investment philosophy and management team.
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