SINGAPORE / BRISBANE – 11 November 2025 – The Straits Trading Company Limited (SGX:S20) (“Straits Trading”), through its wholly-owned subsidiary Straits Real Estate Pte. Ltd. (“SRE”), and Cromwell Property Group (ASX:CMW) (“Cromwell”) today announced a strategic partnership to enhance their industrial and logistics platform across Australia.

Under a series of agreements executed in connection with the partnership, Cromwell will acquire a 19.9% interest in SRE’s Australian industrial portfolio for approximately AUD 47.6 million (SGD 40.5 million¹), based on a total portfolio valuation of about AUD 470 million (SGD 400.1 million¹). The transaction will be executed in two phases. Phase 1, expected to complete by 31 December 2025, involves the acquisition of the 19.9% interest in the seed portfolio and the purchase of Terre Property Partners Pty Ltd. (“TPP”), which oversees the assets comprising the portfolio. Phase 2 will comprise a recapitalisation of the seed portfolio and is expected to commence shortly after completion of Phase 1 and conclude in FY2026. This partnership combines Cromwell’s operational expertise, Straits Trading’s institutional strength and TPP’s deep sector expertise to drive long-term value creation and future fund initiatives.

The seed portfolio comprises seven high-quality industrial assets located in key logistics hubs across South Australia and Victoria which are leased to blue-chip tenants including Coca Cola Europacific Partners, Incitec Pivot and Wengfu. Strategically positioned within established precincts such as Bayswater, Salisbury South and Port Adelaide, the assets benefit from strong connectivity and resilient occupier demand.

Following the acquisition, the TPP team will operate as part of Cromwell’s platform, bringing deep sector expertise and a proven track record in managing and repositioning industrial assets. Their integration will enhance Cromwell’s on-the-ground capabilities and support the continued growth of its investment management business, while contributing to the development of a leading investment management platform aligned with Cromwell’s capital-light strategy. SRE will remain an investor in the portfolio, supporting future growth and capital deployment initiatives.

“We’re excited to join Cromwell’s platform and contribute to the next phase of growth,” said Mr Mark Brammy, CEO, and Mr Mark Pettman, COO of Terre Property Partners. “We’ve built deep expertise across the national industrial sector and have a proven track record in developing and repositioning value-add opportunities into prime grade institutional product. Cromwell’s strategic acquisition of Terre Property Partners, makes us well placed to continue delivering performance and scale, while contributing to the growth of a leading investment management business.”

“This strategic partnership marks an important milestone in our continued focus on optimising our industrial and logistics portfolio. Cromwell’s established presence and deep operational capabilities in Australia will augment our platform and position us for long-term value creation,” said Ms Chew Gek Khim, Executive Chairman of Straits Trading.

“This initiative reflects our continued progress in repositioning Cromwell as a capital-light, investment manager. By expanding our AUM, integrating a proven management team and partnering with an institutional investor of Straits Trading’s calibre, we’re strengthening our platform and creating new opportunities to partner with capital providers in sectors where we see long-term value,” said Mr Jonathan Callaghan, CEO of Cromwell Property Group.

Australia’s industrial and logistics market continues to demonstrate strong fundamentals, with vacancy rates around 1%² and prime rents rising 5% to 8% year on year across key precincts³, underscoring the sector’s resilience and attractiveness as a long-term asset class. These favourable conditions provide a supportive backdrop for the partnership’s continued collaboration and capital redeployment across Australia.

The partnership reflects Straits Trading’s disciplined approach to capital recycling and portfolio optimisation, while advancing Cromwell’s strategy to grow its investment management business and expand assets under management through a capital-light model. Together, the collaboration provides a strong foundation for future fund initiatives and platform expansion across Australia. Both parties remain confident in the resilience of the industrial and logistics sector, supported by robust occupier demand and sustained investor interest, and will continue to focus on building institutional partnerships and delivering long-term value.

Read the full ASX announcement here

Footnotes:

¹ Based on the AUD/SGD exchange rate of 0.8512 as at 10 November 2025. Future settlement amounts may vary as exchange rates fluctuate, potentially resulting in foreign currency gains or losses upon realisation.

² https://www.colliers.com.au/-/media/files/anz/australia/research/2025/quarterly-snapshots/q2/colliers-australian-industrial-and-logistics-snapshot-q2-2025.ashx

³ https://www.cbre.com.au/insights/figures/figures-australia-industrial-and-logistics-q2-2025

Cromwell Property Group (ASX:CMW) (Cromwell or the Group) announces its financial results for the year ended 30 June 2025.

Key highlights

• Strong portfolio performance, sector leading occupancy of 97.6%¹, demonstrating Cromwell’s effective leasing strategy execution.
• Investment Portfolio valuations are up $3.5 million over six months, signalling office market stabilisation, supported by ongoing active asset management.
• Platform transformation delivered, with $1.6 billion in total asset sales since 2022 to reduce debt and enable focus on growth in the Australian funds management business.
• Strong balance sheet ready for capital deployment with low gearing of 28.2% and liquidity of$504.3 million to support growth.
• Funds Management growth pipeline initiated with Barton ACT development underway, featuring a 15-year lease to a Commonwealth Government tenant, with a 5-year extension option.
• Distribution guidance of 3.0 cps is provided for FY26, to be paid quarterly.

Financial performance

Cromwell reports operating profit of $108.6 million driven primarily by the strong ongoing performance of the Investment Portfolio. The Group reports funds from operations (FFO) of $105.7 million (4.0 cps) with a payout ratio of 74.2%. Net Tangible Assets (NTA) are $0.56 per security, well above the current trading price and offering a discounted buying opportunity. Gearing reduces to 28.2% following the sale of 475 Victoria Ave, Chatswood, down significantly from 38.9% at 30 June 2024. The Group has ample liquidity of $504.3 million, providing capital for deployment into value-accretive growth opportunities.

Investment portfolio performance

Strong portfolio performance over the period with sector-leading occupancy of 97 .6%¹. Leasing markets remained active, with over 51,000 sqm² of new or renegotiated leases committed during the financial year. Portfolio valuations increased by $3.5 million (0.17%) from HY25, reflecting a stabilisation in office market values. FY26 vacancy risk has been significantly mitigated through the signing of a Heads of Agreement with a government-funded organisation at 400 George Street, Brisbane which accounts for 55% of the forecast vacancy in that period.

Strategic growth initiatives

Cromwell’s strengthened balance sheet, with ample liquidity and low debt, will support future growth initiatives to drive securityholder value. Cromwell has commenced strategic capital deployment with the recently announced 19,800 sqm office development in Barton, ACT, leased to a Commonwealth Government tenant on a 15-year lease, with 5-year option to extend. This $201 million project is anticipated to deliver a yield on cost of more than 6.3%. Cromwell will introduce capital partners at the appropriate time to reduce its ownership stake, consistent with its transition to a capital-light investment management model.

Dr Gary Weiss, Chair of Cromwell, stated: “Much was achieved during the 2025 financial year to simplify the business and strengthen its financial position. The completion of the sale of non-core assets, including the European Platform, are key steps in simplifying the business structure and reducing Group gearing. Cromwell is now positioned as a well-capitalised, Australia/New Zealand-focused investment manager with capacity to undertake accretive growth initiatives in an improving market.”

Funds management update 

Cromwell’s Funds Management business manages $2.1 billion across Australia and New Zealand. Transaction activity was muted, and valuations in the Cromwell Direct Property Fund (DPF) declined by 5.3% to $537 million over the financial year to 30 June 2025, and only 1.3% from HY25. In July 2025, DPF held a Full Periodic Liquidity Event with the outcome expected end September 2025. In December 2024, unitholders in the Cromwell Riverpark Trust also voted in favour to extend the Fund’s investment term by two years.

Register diversification following ESR exit

In May 2025, ESR Group divested 10.8% of its holding in Cromwell to a mix of new and existing institutional and sophisticated investors. In July 2025, ESR completed the sale of its remaining 19.9% interest in Cromwell to Brookfield Asset Management. The strong uptake reflects positive interest in Cromwell’s repositioned platform, strategic direction, and value proposition.

Board update 

Mr Rob Blain will step down from the Board today but will continue to support Cromwell in an advisory capacity. In line with Cromwell’s commitment to a leaner and more agile operating structure, the Board has decided not to appoint a replacement for Rob. We express sincere thanks to Rob for his outstanding contributions to Cromwell’s strategic transformation.

Outlook

Looking ahead, Cromwell remains focused on active asset management of the current Investment Portfolio to maintain strong occupancy and continue to maximise rental income. Prudent capital deployment will drive growth through new product development, platform acquisitions, and strategic expansion of the investment management business.

Jonathan Callaghan, CEO of Cromwell, commented: “As Cromwell enters a growth phase, our priority remains on delivering stable, long-term growth through disciplined capital management and allocation. With a simplified business model, strong liquidity, and a high-quality portfolio, we are well positioned to take advantage of emerging market opportunities to create enduring value for our securityholders.”

To view the FY25 Results Presentation, click here.

Footnotes: 

¹ Excluding 475 Victoria Avenue, Chatswood, NSW, contracted for sale.
² Includes Barton, ACT, currently under construction.