Real estate fund manager Cromwell Property Group has demonstrated its commitment to the Australian market by divesting its European business.

In a statement to the ASX, the firm, which has $4.5 billion in funds under management in Australia and New Zealand, said it successfully completed the divestment of its European fund management platform at the end of December.

The deal saw the platform and associated co-investments sold to Swiss real estate investment firm Stoneweg. This included all components of its European business as well as a 50 per cent interest in Cromwell Italy Urban Logistics Fund and 27.8 per cent in Cromwell European REIT. 

The firm said the simplification of the business would allow it to focus on its business in Australia and New Zealand instead.

“The strategic move is consistent with the group’s commitment to simplify the business. The exit from the European business allows Cromwell to concentrate on its core competencies in Australia and New Zealand and positions the platform for future growth.” 

Cromwell’s funds offer access to unlisted property trusts, ASX-listed real estate investment trusts (A-REITs) and internationally listed small cap securities.

At the time of the announcement of the deal’s binding agreement back in May 2024, Cromwell chief executive, Jonathan Callaghan, noted the firm had already divested $1.6 billion of non-core assets and investment positions locally and offshore since December 2021 to stabilise the business.

He explained: “This journey has been an extended one due to the complexities involved in undertaking transactions across a number of countries and jurisdictions, with multiple hurdles to overcome. I take this opportunity to thank those members of the Cromwell team who participated in this exercise, especially those who will move to Stoneweg as a result of this transaction.

“I strongly believe that Stoneweg is an excellent match with very little overlap in terms of geographic and asset class focus. We are confident they will be the right custodian for the capital that our platform manages and are well-placed, enabling it to support these mandates and funds including the continued growth of Cromwell European REIT.”