REAL ESTATE INVESTMENT TRUST
Redefine sells part of stake in Australian group Cromwell for R3.7bn
CEO Andrew Konig says the move will create capital efficiency and reduce debt
Diversified real estate investment trust Redefine Properties is set to sell a chunk of its stake in Australian group Cromwell for R3.7bn. The deal, which will bolster Redefine’s liquidity, marks the beginning of a process to rationalise its international holdings. The 19.5% stake will be sold to ARA Asset Management, which is based in Singapore. "This deal ticks a number of boxes for Redefine, which supports our mission to create sustained value for stakeholders. We create capital efficiency, refine our international holdings, reduce debt and have a lot of funding capacity should another investment opportunity arise," said CEO Andrew Konig. Redefine had been operating in a constrained and costly capital environment, and recycling of capital had become a prominent feature of the funding strategy to efficiently source capital and improve credit metrics, Konig said. The deal was subject to Foreign Investment Review Board approval, and following the sale, Redefine would retain 60-millio...
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