Cromwell Property Group (ASX: CMW) has signed a deal to sell its 50% share in the Chatswood joint venture to BlackRock for $87 million, marking a strategic shift in its investment focus.
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The property comprises twin 13‑storey office towers, ground‑floor retail, and three basement parking levels.
The transaction is expected to have a positive impact on Cromwell’s FY26 earnings and reduce gearing by approximately 3%.
The sale aligns with Cromwell’s “invest to manage” strategy, executed by building, selling, and recycling capital into new opportunities.
July’s deal was struck at a 9% discount to its most recent valuation, Cromwell flagged today. The company purchased the asset in 2006 for $110 million and sold 50% to its JV partner in 2020 for $120 million.
Cromwell will realise a property IRR of over 8.5% over the investment period.
Earlier this month, Cromwell revealed that Brookfield has inked an agreement, subject to FIRB approval, to acquire the remaining 19.9% JV stake held by ESR for about A$200M; a 40% discount to net tangible asset value.
The Chatswood exit adds to recent divestments, including the sale of its European funds platform. Cromwell has A$4.5 billion in funds under management.
Update3:41pm, July 25: This article originally erroneously wrote that Brookfield was involved in the 50% sale. We apologise for this error; it has been corrected.
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