Cromwell Property Group to acquire Australian Unity Property

Cromwell Property Group has announced a merger of its Cromwell Direct Property Fund (CDPF) with the Australian Unity Diversified Property Fund (AUDPF).

The merger will create one fund with a diversified portfolio of 15 assets valued at $1.1 billion.

In the announcement to the Australian Securities Exchange (ASX), Cromwell said that the transaction was in line with its strategy and continued the firm’s “journey to a capital-light funds management business model,” which will see the unitholders in CDPF and AUDPF owning interest in a more diversified and stable merged fund with improved geographic and sector diversification.

In a separate deal, Cromwell will acquire Australian Unity Property Limited (AUPL) for $17 million, subject to unitholder approval.

“The proposed transaction aligns with Cromwell’s strategic exit from noncore assets and recycling of capital to grow Cromwell’s funds under management, adding approximately $284 million