Fund Performance

The Trust commenced in October 2013 and its performance is benchmarked against the PCA/IPD Australian Pooled Property Fund Index - Unlisted Core Retail Index

As at 31 December 2016. Fund Performance is presented after fees and costs. Past performance is not an indicator of future performance.

This simple, tax effective investment was a ‘back to basics’ unlisted property trust with a monthly distribution commencing at 7.75% pa¹. The Trust was originally underpinned by three properties: an existing building at South Melbourne in Victoria, a recently completed distribution facility in South Australia, and a commercial office building at Dandenong in Victoria, which reached practical completion on 01 October 2015. The properties in the initial portfolio were 100% occupied and 96% leased to Government or blue chip tenants, with an average annual minimum rental review of 3.8%.

Distributions are forecast to be partly tax deferred until the end of the forecast period in June 20171.

 

Properties

  • The ATO Dandenong building is a seven-level commercial office building at 11-13 Robinson Street, in the outer Melbourne suburb of Dandenong, which reached practical completion in October 2015.
    Sector Commercial/Retail
    Address 11-13 Robinson Street
    Value 50 - 100 million
  • The Rand Distribution Centre is an impressive and substantial purpose built cold store facility located in Direk, South Australia, which reached practical completion in December 2013.
    Sector Commercial/Retail
    Address Lot 902 Caribou Drive
    Value < 50 million

Investment Strategy

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This ‘back to basics’ property trust replicated many features of Cromwell’s other unlisted property trusts including the seven year investment period, innovative construction funding structure and long lease term. However, the Trust has the added benefit of some diversification: underpinned by a three-asset portfolio across Victoria and South Australia.

With low interest rates reducing the yields offered by cash and term deposits, and no exposure to the vagaries of the sharemarket, this simple, tax-effective investment was highly sought after by our investors, and closed fully subscribed within eight months.

The Trust is now paying 8.25% pa1.