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The Cromwell Riverpark Trust

Cromwell Riverpark Trust
Rebate 3.00% (as additional units)
Closing Date CLOSED
Minimum Investment $10,000
Investment Term Closed-end (7-year term)
Research   Lonsec Recommended (Upper End)
 

Cromwell wishes to advise that due to strong inflows the Cromwell Riverpark Trust will close no later than Wednesday 23 December 2009. However, if the full capital raising of $91 million is achieved prior to this date the Trust will be closed earlier.
Applications received after the 23rd or that are incomplete as at the 23rd of December will not be accepted.  The Trust will not be reopened for applications after the close of the offer.

The Cromwell Riverpark Trust is a 7 year commercial property investment, forecast to distribute an initial 8.25% pa and offering capital growth potential and tax deferred income from the energy efficient Riverpark Building in Brisbane.

Conservative Strategy
With world markets continuing to experience volatility and interest rate cuts reducing the yields offered by cash and fixed interest products, Cromwell is creating a simple investment alternative.

The Cromwell Riverpark Trust (“the Trust") is a ‘back to basics’, single property syndicate which has Queensland Government owned corporation Energex Limited as the major tenant.

Investment Objective
The objective of the Trust is to provide investors with a minimum distribution yield of 8.25%pa paid monthly over the 7 year term, with the additional benefit of tax deferred distributions and capital growth potential.

The Asset
$173 million1, 7 storey commercial office/retail building being constructed at 33 Breakfast Creek Road, Newstead, just two kilometres from the Brisbane CBD. The site forms part of a new inner-city mixed-use community on the banks of the Brisbane River.

93% of the net lettable area of the property will be leased to Energex Limited until 20252. Energex is one of Australia’s largest and fastest growing electricity suppliers.

The 7% balance of the property will be subject to a five year lease arrangement with a subsidiary of ASX listed FKP Property Group6

Features of the Trust
8.25% pa monthly distributions forecast from date units are issued, increasing to 8.50% pa upon building practical completion and forecast to continue to grow
100% tax deferred distributions forecast to 30 June 20123
7 year investment term
Sensibly geared with a 55% gearing ratio
Potential for capital growth4
Simple transparent structure with no capital support of distributions.
Features of the Asset1
100% of the net lettable area precommitted
14.1 year weighted average lease term6 - 7 years past the proposed end date of the Trust
$173 million commercial property asset1
30,904 sqm net lettable area
State of the art, energy efficient building - Awarded a Six Star Green Star Certified Rating in 2008 under the Green Building Council of Australia’s Green Star – Office Design v2 rating tool.

Investment Details
Responsible Entity Cromwell Property Securities Limited (CPS)
Capital Raising $91 million5
Proposed Settlement Date 31 March 2009
Entry Price $1.00 per unit  Units should be issued the business day prior to Settlement Date. Units will not be issued, and application monies will be returned, if certain conditions are not met.
Minimum Initial Investment $10,000
Stamp Duty Saving By acquiring the land prior to Practical Completion of the building, the Trust saves approx $8.3 million in stamp duty resulting in a significantly improved NTA upon completion.
All information relates to A Class Units in the Cromwell Riverpark Trust.
(1) Based on “as if complete" valuation by Landmark White Brisbane Pty Ltd.
(2) Based on 15 year agreement for lease from date of practical completion, estimated at June 2010.
(3) The proportion of distributions that are tax deferred is dependent on a number of factors (for example building amortisation and depreciation of plant and equipment) and may vary from year to year. Deferred tax may be payable, in whole or in part, on the sale, transfer or redemption of units in the Trust.
(4) Capital growth is not guaranteed.
(5) $91 million to be raised includes A Class Units to be offered to retail and B Class Units to be offered to certain significant wholesale investors under a separate offer document.
(6) From Practical Completion.

Units in the Trust are issued by Cromwell Property Securities Limited ABN 11 079 147 809, AFSL 238052. Before making an investment decision in relation to the Trust investors should read the Product Disclosure Statement dated 25 February 2009, which is available above. This information has been prepared without taking into account your objectives, financial situation or needs. Therefore, in deciding whether to acquire an investment in the Trust, you should consider the PDS and assess, with or without your financial or taxation advisor, whether the product fits your objectives, financial situation or needs.
 
Simply download an Investment Brochure/PDS above. It’s that easy!

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