Stoneweg has entered into a binding agreement with Cromwell Property Group to acquire Cromwell’s European fund management platform and associated co-investments for a total consideration of €280m.
Under the terms of the transaction, Stoneweg is acquiring Cromwell’s 100% interest in Cromwell Europe, 27.8% unit holding in CEREIT – a real estate investment trust listed in Singapore with a €2.2bn portfolio, 100% interest in the Singapore-based manager of CEREIT and 50% interest in the Cromwell Urban Italy Logistics Fund.
Cromwell’s European platform, which totals €3.9bn of real estate assets under management, comprises more than 160 assets and 1,600 tenants.
Led by Stoneweg’s co-founders, Jaume Sabater (CEO) and Joaquin Castellvi (head of acquisitions) and Icona’s founder, Max-Hervé George (Stoneweg strategic shareholder), the combined platform will continue to operate as Stoneweg and the enlarged group will manage circa €8bn of assets.
Sabater (pictured) said: “This milestone transaction immediately creates a pan-European real estate asset management platform of scale and continues our strong track record of successful transactions to deliver value for our investors. It successfully brings together two highly complementary businesses with a shared conviction in the compelling structural, demographic and technological drivers underpinning select real estate asset classes in Europe.
“Leveraging the respective businesses’ deep operational real estate investment and development expertise, the transaction establishes Stoneweg across all of Europe’s major geographies, enabling us to accelerate our market share ambitions and follow through on our convictions at what is a compelling point in the cycle.
“Heralding a new era for Stoneweg, we are hugely excited by the potential of the enlarged group and look forward to integrating the Cromwell European team into the existing Stoneweg organisation, creating a true one-stop-shop for institutional and private equity investors.
“The addition of the manager of the Singapore-listed Cromwell European REIT extends our reach into Asia and those investors seeking exposure to high-quality and sustainable real estate assets across Europe. With our co-investment in Cromwell European REIT we look forward to taking on our new role as the sponsor, working closely with the board, the manager, unit holders and key relationship banks to ensure continuity of operations and pursue growth together.”
Max-Hervé George, founder and CEO of Icona Capital, added: “Icona joined Stoneweg as a strategic shareholder and investor in 2022, with a clear target to grow the business into a leading global real estate player. In this context, Icona is very happy to have participated in this major transaction, which provides the platform for Stoneweg and Icona to achieve their goal, strengthening both their market presence and partnership.”
Jonathan Callaghan, CEO of Cromwell Property Group, said: “I strongly believe that Stoneweg is an excellent match with very little overlap in terms of geographic and asset class focus, and I take this opportunity to thank all staff who have participated in this exercise, especially those joining Stoneweg as part of this transaction.”
Swiss Bank and Stoneweg’s shareholder, CBH Compagnie Bancaire Helvétique SA, acted as financial adviser to the buyer for the transaction.
