Highlights

  • Cromwell Property Group to acquire a 19.9% interest in Straits Real Estate’s AUD 470 million Australian industrial portfolio for AUD 47.6 million.
  • Acquisition of Terre Property Partners platform adds AUD 540 million in assets under management (AUM).
  • Transaction to complete in two phases, with Phase 1 expected by 31 December 2025 and Phase 2 during FY2026.

Cromwell Property Group (ASX:CMW) has entered into conditional agreements with Straits Real Estate Pte. Ltd. (SRE), a subsidiary of The Straits Trading Company Limited (SGX:S20), to acquire a minority stake in its Australian industrial portfolio valued at AUD 470 million. The transaction, valued at AUD 47.6 million, along with the purchase of the portfolio’s management platform, is expected to expand Cromwell’s assets under management (AUM) by approximately AUD 540 million.

Strategic Industrial Acquisition

Under the agreement, Cromwell will purchase a 19.9% interest in SRE’s Australian industrial portfolio and acquire Terre Property Partners (TPP), the platform that currently manages the portfolio. The TPP acquisition involves an upfront payment of AUD 2 million, with potential deferred consideration based on platform performance.

The portfolio comprises seven industrial assets located across major logistics hubs in Victoria and South Australia, leased to tenants such as Coca-Cola Europacific Partners, Incitec Pivot, and Wengfu. The properties are situated in established precincts including Bayswater, Salisbury South, and Port Adelaide, offering Cromwell increased exposure to key industrial markets.

Transaction Structure and Timeline

The transaction will be implemented in two phases.

  • Phase 1, expected to settle by 31 December 2025, will include the acquisition of the 19.9% portfolio interest and the purchase of the TPP management platform.
  • Phase 2, scheduled to conclude during FY2026, involves a recapitalisation of the seed portfolio. This phase aims to introduce new capital and raise additional funds to support future portfolio growth.

Straits Real Estate intends to remain an investor in the portfolio following the recapitalisation. Completion of the transaction is subject to customary conditions, including regulatory approvals and final documentation.

Expanding Platform Capabilities

Through the acquisition of TPP, Cromwell gains access to a management team with in-depth sector expertise and operational experience. The team will become part of Cromwell’s platform, enhancing the Group’s industrial and logistics management capabilities and supporting the expansion of its investment management business.

Outlook

Cromwell stated that the transaction is consistent with its FY26 distribution guidance of 3.0 cents per security, with no immediate material change to forecasted earnings.

During trading on 11 November 2025, Cromwell Property Group shares were trading at 48.5 cents per share on the ASX.