Cromwell Property Group (ASX:CMW) has signed a conditional agreement to divest its remaining 50% stake in 475 Victoria Avenue, Chatswood, New South Wales, for around AU$87 million, according to a Thursday Australian bourse filing.
The deal is expected to raise fiscal year 2026 earnings and reduce gearing by around 3%, with the sale price reflecting a 9% discount to the latest valuation, the filing said.
The company is set to achieve a property internal rate of return of over 8.5% since acquiring the asset for AU$110 million in 2006 and selling a 50% stake to its joint venture partner for AU$120 million in 2020, the filing added.
The transaction is expected to close in the first quarter of fiscal year 2026.
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