FAQ

The CPF is open ended, allowing it to grow and be continuously available for investment. Additional properties will be added to CPF to utilise additional capital raised, and to increase the diversification of CPF.

The Responsible Entity of the CPF is Cromwell Property Securities Limited ABN 11 079 147 809 (“Cromwell”), a property investment fund manager which commenced operations in 1998. Cromwell currently has over $1.7 billion in assets under management. Cromwell holds an Australian Financial Services Licence (No 238 052) granted by ASIC to act as the responsible entity to promote and manage Managed Investments Schemes. Cromwell is a wholly owned subsidiary of Cromwell Corporation Limited and part of Cromwell Group, a stapled security listed on the ASX (ASX:CMW).

CPF aims to provide monthly tax deferred income and capital growth to investors. Cromwell intends to achieve this by investing in, and actively managing, a portfolio of quality property assets utilising gearing and minimising risk through diversification.

As at 30 June 2008 CPF owned properties valued at $472 million.

Charts statistics are as at 30 June 2008.

To access the current and historical CPF Issue and Withdrawal prices please click here.
 
When you make an investment into CPF you will be allocations a number of units based on the Issue Price. The Issue Price is normally calculated on each Brisbane business day.
 
A copy of the CPF Unit Pricing Policies can be requested from the Cromwell Investor Service team on 1800 334 533 or invest@cromwell.com.au

The minimum investment amount is $10,000 and then in multiples of $1,000 (unless otherwise agreed by Cromwell).

CPF is an unlisted property fund. However, a limited monthly withdrawal facility is available, meaning you may be able to withdraw all or part of your capital if required.

Total withdrawals each month are limited to a maximum of 0.5% of the net asset value of the Fund on the first business day of each month for the corresponding 1 month period. If this limit is exceeded then withdrawal requests for the month will be prorated. If any investor’s withdrawal request is not met in full, then the balance of the request not met will be carried forward to the following month as if a new withdrawal request had been made, unless the investor elects otherwise. Cromwell has up to 365 days to meet any withdrawal request.
 
For further details refer to the PDS dated 12 October 2007, section 8.5.

To make a withdrawal, direct investors should complete a Withdrawal Request Form – click here. IDPS investors can only withdraw through the IDPS operator in accordance with their terms and conditions.

To 30 June 2008 CPF had distributed not less than 8.0 cents per unit pa. Distributions are paid monthly. For the current distribution rate please contact our Investor Services Team on 1800 334 533. Past performance is not indicative of future performance.

Cromwell believes that a significant co-investment in the CPF by Cromwell Group benefits investors as it aligns Cromwell’s interests with the interests of investors. As at 30 June 2008, Cromwell Group held approximately 18% of the units on issue in CPF. Cromwell Group intends to continue to co-invest in CPF such that it maintains a holding of 15-20% of the issued units.

Core borrowings will generally be limited to a maximum of 65% of the gross value of the assets of CPF. This amount is described as the loan to valuation ratio (“LVR”).
 
CPF may temporarily increase its borrowings above this limit to acquire property, although other than in special circumstances, it is the intention of Cromwell that borrowings to enable acquisition of additional properties will not exceed a LVR of 75% of the gross value of the assets of CPF.

To 30 June 2008 distributions have been 100% tax deferred, however the portion of distributions which is tax deferred will vary from year to year.
 
Allowances for the amortisation of the buildings, depreciation of plant and equipment and the writing off over time of capital raising and borrowing costs result in a portion of the distributions being tax deferred.
 
Deferred tax is usually payable in the year in which your investment is sold, transferred or otherwise disposed of, and may be reduced in the future by capital gains tax discounts or other individual investor circumstances.

All investments have associated risks. Key risks of an investment in CPF include:

• Property risks – a risk that one or more properties will reduce in value
• Revenue risks – the risk that CPF income declines where a property is not fully leased, tenants default, or rent levels decline
• Liquidity risk – the risk that you have difficulty withdrawing from CPF

 
For full details please refer to Part 5 in the PDS dated 12 October 2007.

The following table outlines the targeted investment allocations for CPF:

1. Cromwell may change asset allocations in the future.
2. Direct property investments may include investments in entities which hold direct property, where a majority ownership is held.
3. Other property-related investments could include loans or other debt investments secured by property assets and minority investments in other unlisted direct property funds.

Cromwell intends that CPF will hold at least 6% of net assets in liquid investments to meet the requirements of the limited monthly withdrawal facility. 

Gearing facilities are currently available through Macquarie Property Access. For further information click here.

CPF has a compliance plan which has been lodged with ASIC. The compliance plan contains procedures for ensuring compliance with the Corporations Act and the Constitution of the Fund. A Compliance Committee is in place to, amongst other things, monitor Cromwell’s adherence to the Plan.

Centrelink treats investments such as CPF as financial investments for the purposes of its deeming provisions, with the result that the amount invested is ascribed income at a deemed rate and is treated as a financial asset.

Yes, Cromwell issues tax statements/reports after the end of the financial year. We endeavour to release tax statements at the end of August. You should not lodge your tax return until the statement is received.

Click here to order or download a product disclosure statement, contact the Cromwell Investor Service team on 1800 334 533, or contact your financial advisor.