Redefine makes part disposal of Cromwell Securities
Redefine International has disposed of 54.24 million securities in its associate company the Cromwell Property Group, held through its 100 per cent held subsidiary, Redefine Australian Investments Limited.
Cromwell, a stapled security listed on the Australian Stock Exchange (ASX), comprises the Cromwell Diversified Property Trust and Cromwell Corporation Limited.
The Cromwell securities were sold on the ASX at a 0.8 per cent premium on the 30 day VWAP for a total consideration of AUD54.48 million (GBP30.66 million). The transaction reflects a GBP2.01 million surplus on the 28 February 2014 interim valuation. Following the transaction the company’s holding in Cromwell will reduce from 13.13 per cent to 9.99 per cent.
The transaction is in line with Redefine International’s objective of recycling its capital into new high yielding opportunities where it can use its asset management expertise to extract future value on behalf of shareholders. The proceeds of the sale will be used to further strengthen the company’s cash position and for general investment purposes.
Chief executive Mike Watters says: “We have achieved excellent returns from our investment in Cromwell and remain a committed shareholder. The sale of part of the company’s investment in Cromwell is in line with our objective of recycling capital across the different parts of the company’s diversified portfolio, enabling us to take advantage of a number of new and exciting UK and European based investment opportunities which support our income focused strategy.”
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