Cromwell Buys Out Investors in Polish Retail Fund
Real estate investor and manager Cromwell Property Group has this week that it has signed agreements to acquire all third party investor interests in the Cromwell Polish Retail Fund (CPRF) as part of its ‘Invest to Manage’ strategy.
The ‘Invest to Manage’ strategy involves investing capital to acquire or improve assets, and then creating new funds to attract investment from capital partners. Cromwell will then typically hold a coinvestment stake in each fund, manage the assets and recycle the capital into new initiatives.
CPRF contains seven catchment-dominating shopping centres with a Gross Asset Value of approximately €600 million (A$1 billion). The centres have an occupancy rate of 96.3% and a weighted average lease term (WALT) of 5.1 years.
Cromwell’s Polish team has been managing and developing the assets for over a decade. In August 2019, Cromwell opened the newest section of Janki Shopping Centre in Warsaw, following the completion of a major €65 million (A$110 million) refurbishment which added gross lettable area of 21,000 square metres (sqm).
Poland has been Europe’s fastest growing economy over the past five years, with Gross Domestic Product growth of 4.5% in the 12 months to 30 June 2019. It also has one of the highest expected growths in disposable income, consumer spending and retail sales globally.
Cromwell Chief Executive Officer, Paul Weightman, commented, “Poland is Europe’s success story. It is a market we know well and are very positive about. We have 34 real estate professionals on the ground, managing 21 assets with more than 660 tenant customers and over 758,000 sqm of space.”
“We will rollover the acquired interests into a new fund which will be offered to capital partners,” Mr Weightman concluded.