Redefine International raises R181m from sale of Cromwell shares

REDEFINE International plc, the London-listed subsidiary of JSElisted Redefine Properties International, said yesterday it had sold part of its investment in Australian property trust Cromwell Property Group, “generating significant net profit” of A$18.7m (about R181m).

Redefine Properties International CEO Mike Watters said the disposal was “in line with our objective of recycling our capital”. The sale would enable the group to take advantage of investment opportunities “which support our income-focused strategy”.

Redefine International disposed of 84.5-million securities in Cromwell, its associate company held through Redefine International’s 100% held subsidiary, Redefine Australian Investments.

Cromwell comprises the Cromwell Diversified Property Trust and Cromwell Corporation. The securities were sold on the Australian Stock Exchange at prices ranging from A$0.90 to A$96.53, for which Redefine International received a total consideration of A$76.2m.

Following the transaction, Redefine International’s holding in Cromwell will fall from 22.01% to 16.22%.

The proceeds of the net profit attributable to the sale of A$18.7m “will be used to further strengthen the company’s cash position and for general investment purposes”, the company said. Suitable opportunities in this regard were being considered.

Redefine International said it would continue to support Cromwell’s management team at both equity and board levels.

Redefine Properties International was listed on the JSE in 2010, and holds as its sole asset a majority stake in Redefine International, whose portfolio is made up of investments across the UK, Germany, Switzerland, Holland and Australia.