3 Apr 2013 10:15
3 April 2013
REDEFINE INTERNATIONAL P.L.C.
("Redefine International" or the "Company")
Redefine International makes part disposal of Cromwell Securities generating significant net profit
Redefine International, the diversified income focused property company, announces that it has disposed of 84.5 million securities in its associate company the Cromwell Property Group ("Cromwell"), held through its 100% held subsidiary, Redefine Australian Investments Limited (the "Transaction" or the "Sale").
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 prices ranging from AUD90 cents to AUD96.53 cents for which the Company received a total consideration of AUD76.2 million (GBP52.5 million). Following the Transaction the Company's holding in Cromwell will reduce from 22.01% to 16.22%. The Company remains a committed long-term investor in Cromwell and will continue to support the management team at both equity and board levels.
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 value on behalf of shareholders. The net profit attributable to the Sale amounts to approximately AUD18.7 million (GBP12.9 million), the proceeds of which will be used to further strengthen the Company's cash position and for general investment purposes. Suitable opportunities in this regard are currently being considered and further announcements will be made as and when appropriate.
Commenting, Mike Watters, said:
"We have achieved excellent returns from our investment in Cromwell and remain a committed long-term investor to both Cromwell and the Australian property market. The sale of part of Redefine International's investment in Cromwell is in line with our objective of recycling our capital and will enable us to take advantage of a number of new and exciting investment opportunities which support our income focussed strategy."
Further enquiries:
Redefine International Property Management Limited Investment Adviser |
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Mike Watters, Stephen Oakenfull | Tel: +44 (0) 20 7811 0100 |
FTI Consulting Public Relations Adviser |
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Stephanie Highett, Dido Laurimore, Faye Walters | Tel: +44 (0) 20 7831 3113 |