Cromwell Property Group has sold a 50% stake in a North Sydney office tower for A$300m (鈧�186m) as it builds a war chest to target A$2bn in acquisitions and value-add development opportunities in Europe and Australia.
The sale of the stake in Northpoint Tower to its joint venture partner, Hong Kong-based Early Light International, ends the Australian group鈥檚 six-year ownership of the landmark building.
The Hong Kong investor bought a half stake in what is the tallest building in North Sydney for A$300m last August, and has now assumed full ownership following refurbishment.
Last week, Cromwell raised A$375m in an institutional placement and secured a three-year 鈧�225m syndicated debt facility.
The company said it had identified more than A$1bn of acquisition opportunities that were in either exclusive due diligence or advanced negotiations in Australia and overseas.
Cromwell will also use the freshly-raised capital to fund value-add developments, worth more than A$1bn.
Cromwell CIO Rob Percy said: 鈥淐romwell continues to identify value-enhancing investment opportunities across both its indirect and direct property investment platforms.鈥�
He added: 鈥淲e will continue to recycle capital which, in conjunction with the placement, will allow us to accelerate execution of our 鈥榠nvest to manage鈥� strategy.鈥�
Percy cited Northpoint Tower as a 鈥済reat example鈥� of what can be achieved.
Cromwell acquired the 鈥渧ery much unloved asset鈥� for A$139m in 2013 and spent A$130m refurbishing the 1970s building. The redevelopment involved the addition of a 187-room hotel.
