Cromwell Property Group said it exercised its preemptive right to buy out investors in the Cromwell Polish Retail Fund.
The investment vehicle comprises seven shopping centers with a gross asset value of approximately €600 million, according to the company's Aug. 29 earnings release. Cromwell CEO Paul Weightman said the company proposes rolling over the acquired interests into a new fund, which will be offered to capital partners. He added that the company intends to initially underwrite the fund for the purposes of taking a co-investment stake.
Cromwell Property will own a stake of between 20% and 30% in the new trust, IPE Real Estate noted, adding that Weightman expects to bring initial capital partners to the new fund by October.
The company has about €245 million in equity in the closed-ended fund, which is scheduled to be wound up in December, Weightman said. The company will underwrite about the same amount for the transaction prior to the arrival of third-party capital, he added.
Cromwell said it has identified a roughly A$1 billion pipeline of value-add development opportunities in Australia, including its ongoing Seniors' Living redevelopment in Greenway.
