Cromwell Property Group has sold a 50% stake in a North Sydney office tower for A$300m (β¬186m) as it builds a war chest to target A$2bn in acquisitions and value-add development opportunities in Europe and Australia.
The sale of the stake in Northpoint Tower to its joint venture partner, Hong Kong-based Early Light International, ends the Australian groupβs six-year ownership of the landmark building.
The Hong Kong investor bought a half stake in what is the tallest building in North Sydney for A$300m last August, and has now assumed full ownership following refurbishment.
Last week, Cromwell raised A$375m in an institutional placement and secured a three-year β¬225m syndicated debt facility.
The company said it had identified more than A$1bn of acquisition opportunities that were in either exclusive due diligence or advanced negotiations in Australia and overseas.
Cromwell will also use the freshly-raised capital to fund value-add developments, worth more than A$1bn.
Cromwell CIO Rob Percy said: βCromwell continues to identify value-enhancing investment opportunities across both its indirect and direct property investment platforms.β
He added: βWe will continue to recycle capital which, in conjunction with the placement, will allow us to accelerate execution of our βinvest to manageβ strategy.β
Percy cited Northpoint Tower as a βgreat exampleβ of what can be achieved.
Cromwell acquired the βvery much unloved assetβ for A$139m in 2013 and spent A$130m refurbishing the 1970s building. The redevelopment involved the addition of a 187-room hotel.
