200 mary street
200 Mary Street, Brisbane. Image – Cromwell.
  • Cromwell Porperty Group has sold the asset to Wingate
  • The sale represents a premium of 8.1%
  • Transaction was negotiated by CBRE's Peter Chapple, Bruce Baker and Tom Phipps

Real estate fund manager and investor, Cromwell Property Group (ASX: CMW), has exchanged the sale of its asset at 200 Mary Street, Brisbane to private markets finance and investment house Wingate for $108.5M.

After settlement adjustments, the sale represents a premium of 8.1% to book value.

The transaction was negotiated by CBRE’s Peter Chapple, Bruce Baker and Tom Phipps.

The 20-storey building currently serves as Cromwell’s head office and has views of the Brisbane River, hinterland and the CBD.

Since it was acquired from AMP in 2001, Cromwell has progressively refurbished and modernised the B-grade building.

“This sale further demonstrates Cromwell’s proven approach to active portfolio and asset management,” said Rob Percy, Cromwell’s Chief Investment Officer.

“We have created significant value through repositioning the asset and, with high quality tenants and long-term leases in place, now is the right time to capture significant upside and unlock the value Cromwell has achieved.”

New strategy

The sale of 200 Mary Street is part of Cromwell’s announced strategy to sell non-core assets as it transforms into a capital light funds management business. Progressively, it will launch new funds

The asset is expected to settle by the end of the financial year.

The sale comes as Cromwell has made progress on other non-core asset sales. This included Village Cinema Centre in Geelong for $19.775 million and the exchange of contracts on the TGA Complex in Symonston.

Combined, both of these asset sales will releases over $140 million of capital, which the fund manager intends to use to reduce gearing before reinvestment aligning with its new strategic initiatives.

Cromwell, however, will remain headquartered at the building, with the lease to expire in March 2024.

As of 31 December 2021, Cromwell has a market capitalisation of $2.3 billion, an Australian investment portfolio valued at $3.1 billion and total assets across Australia, New Zealand and Europe under management of $12.1 billion.



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