Fund Manager Summary on Cromwell Property Group (ASX:CMW)
Cromwell Property Group (ASX:CMW) has demonstrated a +22% return in July 2025, bolstered by Brookfield's binding agreement to acquire ESR's remaining 19.9% stake, which previously posed a share overhang. Fund managers note that this shift signals potential for further strategic moves by Brookfield. With gearing below 30% following the successful completion of its simplification program and a strong tenant base—nearly 50% of gross rental income sourced from government entities—Cromwell is positioned for local growth. However, despite the recent rally, the company remains at a significant discount to its net tangible assets (NTA) of approximately 57cps, suggesting inherent value opportunities. Investors should consider market pressures alongside these growth prospects.
Commentary From The Managers
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Spheria Asset Management
31 July 2025
$0.42
Summary
- Cromwell Property Group (CMW.ASX) experienced a return of +22% in the last month.
- Brookfield has signed a binding sale and purchase agreement to acquire ESR’s remaining 19.9% stake in Cromwell, pending FIRB approval.
- The ESR stake was previously viewed as a share overhang, and Brookfield is expected to take further action.
- Gearing is under 30% of gross assets following the completion of its simplification program.
- Cromwell has disposed of its European platform and is now focused on local growth opportunities.
- The business boasts a high-quality tenant profile, with nearly half of gross rental income derived from government tenants.
- Cromwell’s NTA is approximately 57cps, showing a significant discount to tangible assets and fundamental value.
- Spheria Asset Management continues to hold its position in Cromwell due to these favorable developments.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in Cromwell Property Group (ASX:CMW)?
Fund managers including Spheria Asset Management have invested in Cromwell Property Group (ASX:CMW).
Why do fund managers invest in Cromwell Property Group?
Fund managers invest in Cromwell Property Group due to its strong fundamentals and growth potential. The company has low gearing, below 30% of gross assets, which supports financial stability. Its tenant profile is robust, with nearly half of the rental income derived from government clients. Additionally, the recent acquisition of ESR's stake reduces share overhang, and Cromwell’s net tangible assets are valued at approximately 57 cents per share, indicating significant upside potential as the stock trades at a discount to its intrinsic value.
What happened to Cromwell Property Group (ASX:CMW)?
There have been no recent updates from fund managers regarding Cromwell Property Group although fund managers including Spheria Asset Management have previously commented.
What is the short interest in Cromwell Property Group (ASX:CMW)?
The short interest in Cromwell Property Group (ASX:CMW) is 0.34% which makes it the 318th most shorted stock on the ASX. Of the 2.6B shares that Cromwell Property Group has on issue, 8.9M have been sold short.
What does Cromwell Property Group (ASX:CMW) do?
Cromwell Property Group is a real estate investment trust, which engages in the property investment and funds management business. It operates through the following segments: Funds and Asset Management, Co-Investments, and Investment Portfolio. The Funds and Asset Management segment represents activities in relation to the establishment and management of external funds for institutional and retail investors. The Co-Investments segment includes Cromwell's investments in assets warehoused whilst being repositioned for deployment into the fund and asset management business and assets it may not fully own or over which it cannot exercise unilateral control. The Investment Portfolio segment consists of the ownership of investment properties located in Australia. The company was founded in 1970 and is headquartered in Brisbane, Australia.