Cromwell has made a $170 million strategic placement to SingHaiyi Group and Haiyi Holdings, entities associated with two investors in the Cromwell European REIT (CEREIT), according to a statement.
Haiyi Holdings is a private holding company owned by global real estate investors Gordon Tang and Celine Tang, while SingHaiyi Group is listed on Singapore’s stock exchange.
Mr and Ms Tang hold experience in real estate development, investment and management in both listed and unlisted vehicles through Haiyi Holdings.
Proceeds from the placement will be used to pay off short-term debt associated with Cromwell’s investment in CEREIT and for investing in “value-adding opportunities in the portfolio and potential acquisition opportunities”.
Cromwell chief executive Paul Weightman said Mr and Ms Tang’s investment in Cromwell, following their investment in CEREIT, signalled faith in the platform and the team behind it.
“Their investment reaffirms Cromwell’s standing as a global real estate investment manager and highlights our ability to access capital from across the globe, in particular from Asia,” Mr Weightman said.
The strategic placement would better position Cromwell for future growth, enable diversity of earnings and manage potential downside market risk in the coming years, the statement said.
“We are also committed to ensuring our retail securityholders are given the opportunity to participate in the transformation of our global funds platform on similar terms, and expect to offer a security purchase plan to eligible Cromwell securityholders in Q1 2018,” Mr Weightman added.
The strategic placement would see around 175 million new Cromwell stapled securities (New Securities) issued for a price of $0.9691 per New Security, to be allotted on 15 December 2017 and distributed by Cromwell for the quarter ending 31 December.
From 1 January 2018, the New Securities, which will be issued within Cromwell’s 15 per cent placement capacity, would rank equally alongside existing Cromwell stapled securities.
