To ensure we are providing an accurate and up to date value of our investors’ holdings, it is important to regularly revalue all the assets in the portfolio. Current market and sub-market conditions are also closely monitored and opportunities for disposal and restructuring are reviewed not less than weekly to ensure that investors’ capital is invested for maximum return.
In June 2007, Cromwell entered into a put and call option arrangement for the sale of the Bundall Corporate Centre and associated development site on the Gold Coast for $106 million. The transaction was negotiated just 18 months after acquiring the assets for $52.9 million and is an example of Cromwell’s ability to identify and acquire assets with significant potential to add value. During the 18 months between acquisition and sale, Cromwell made significant progress through the planning and approval stages for further development of the site. The result was a number of off-market approaches from potential purchasers who recognised the attractive development option Cromwell was able to produce for the site. In light of the offers, it was decided to take advantage of the strong Gold Coast commercial property market and realise a profit that exceeded initial expectations. The existing Bundall Corporate Centre office tower sold for $67 million, demonstrating a property IRR of 29.1% and the development site sold for $39 million, more than 4.5 times the purchase price, demonstrating a property IRR of 128.6%.