Cromwell bulks up for a $1 billion spending spree
26 June 2019, Written by Paris Faint欧洲杯在线投注
Cromwell Property Group (ASX: CMW) has announced a master plan to pursue more than $1 billion worth of acquisitions across Australia and Europe in the near future.
欧洲杯在线投注 The property and development giant says it has identified several acquisition opportunities across Australian and Europe as a part of its 'Invest to Manage' strategy.
But before it goes on a buyout spree, Cromwell will first complete a $375 million capital raising to provide certainty of funding.
欧洲杯在线投注 Cromwell has today launched the underwritten institutional placement at a fixed price of $1.15 per new share.
CEO Paul Weightman (pictured) says the funds raised, in addition to existing capital, will support the ambitious $1 billion investment pipeline.
"Cromwell has identified over $500 million of high quality Australian core office opportunities and over $500 million of office and retail opportunities in Euorpe which are ideally suited to our 'Invest to Manage' strategy," says Weightman.
"The warehousing of these opportunities will allow us to seed new funds, co-invest alongside our global capital partners and accelerate growth of assets under management.
"The equity raising will provide certainty of funding to pursue these opportunities, strengthen the balance sheet and allow for growth in distributions.
欧洲杯在线投注 At this stage Cromwell has not revealed the exact timeline for when the $1 billion worth of acquisitions will be completed, nor has it specified which assets are being targeted.
However, Weightman says many of the proposed acquisitions are already either in advanced negotiation stages or subject to exclusive due diligence.
欧洲杯在线投注 Cromwell has reaffirmed its FY19 guidance at an operating profit of 8cps or more, plus distributions of 7.25cps.
At the time of writing (11:21am AEST), CMW is trading at $1.25.Never miss a news update, subscribe here. Follow us on , , and .
Business News Australia
Author: Paris Faint