Cromwell bullish as ARA fight continues

Cromwell has insisted it is on track as it faces off against major shareholder ARA Asset Management of Singapore.

Paul Weightman, CEO of Cromwell Property Group Picture: Renee Nowytarger

Property company Cromwell has insisted it is on track as it faces off against major shareholder Singaporean group ARA Asset Management, which is attempting to install legendary corporate raider Gary Weiss on its board.

In a bullish update to investors, Cromwell said its Polish business was on track and it would soon take full control of a $1bn shopping centre fund in the eastern European country.

Locally, it was also garnering new investors in a $525m Brisbane tower it beat ARA to buying in June.

The battle for control of the company has pitched property veterans Cromwell chief Paul Weightman and local ARA chief David Blight, who left the Cromwell board in July, against each other, amid suggestions the Singaporean company was seeking control using its 20 per cent stake.

ARA has rejected that claim but Mr Weightman has again pointed to the potential conflicts of interest held by Dr Weiss if he was elected to the board next month.

The Cromwell chief told The Australian that the company’s independent chairman Geoff Levy had raised the issue of conflicts with ARA when it expressed interest in taking a stake last year.

Mr Levy received assurances that ARA would act through Cromwell in Europe and would not look at the same kind of ­assets locally, he said. ARA has since struck a joint venture with a rival group in Europe and the companies have chased the same buildings in Australia.

“The biggest challenge is no matter who they put up as a representative that conflict will exist,” Mr Weightman said. The Cromwell chief said ARA had been asked to contribute to a board renewal process but had not done so.

The Singaporean company has argued that Cromwell needs better corporate governance and has called for it to rein in its expansion in Europe. It defended Dr Weiss on the basis of his extensive corporate record.

The ARA camp has argued that its 20 per cent interest should be able to seek one of seven board seats and denied Dr Weiss could exercise control.

ARA this week applied to boost its shareholding by using creep provisions that would allow it to push above its existing holding. The Singaporean company has sought to position Dr Weiss as a potential peacemaker. He had sought to resolve issues between Cromwell and ARA before the company’s annual meeting on November 28 but was rebuffed.

Both camps are lobbying proxy houses to recommend institutions provide a favourable vote. ARA last week tried to douse market speculation of an imminent takeover move.