OFFER NOW CLOSED

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

The Trust is a 7 year investment, currently distributing an initial 8.25% pa¹ forecast to increase to 8.50% pa upon building practical completion of the asset, expected in mid 2010¹. The Trust also offers capital growth potential¹ and tax deferred² distributions from the energy efficient Riverpark Building in Brisbane.  

enviable market timing

Cromwell secured this asset at a time when most property players were sitting on the sidelines.  The acquisition has sparked the interest of thousands of investors who have taken up units to share in the opportunity presented by the Trust. This chart shows the value of the ASX All Ords and A-REIT Index, demonstrating the enviable timing of the acquisition of the Riverpark Building from a listed property developer. This is your chance to participate in a product that’s asset is positioned for growth¹.

the asset

The Riverpark Building is a $173 million³, 7 storey commercial office/retail building currently being constructed at 33 Breakfast Creek Road, Newstead, just two kilometres from the Brisbane CBD.  Construction is expected to be completed in June 2010.  The site forms part of a new inner-city mixed-use community on the banks of the Brisbane River.

93% of the property when complete has been leased to utilities provider Energex Limited until 2025⁴. 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 Group⁵.

Features of the trust

• 8.25% pa¹ distributions, increasing to 8.50% pa upon building practical completion
• Monthly distributions 
• 100% tax deferred² distributions forecast to 30 June 2012
• 7 year investment term
• Sensibly geared with a 55% gearing ratio
• Potential for capital growth¹
• Simple transparent structure with no capital support of distributions.

Features of the asset

• 100% of the net lettable area precommitted
• 14.1 year weighted average lease term⁵
  à7 years past the proposed end date of the Trust
• $173 million commercial property asset³
• 30,904 sqm net lettable area
• State of the art, energy efficient building
  àGiven a Six Star Green Star Certified Rating in 2008 under the Green Building Council of Australia’s Green Star – Office Design v2 rating tool

EXPERIENCED FUND MANAGER

Cromwell is an Australian property investment company with a proven track record of developing high quality, high yielding investment products.

With investor returns relying on the continued occupancy and improvement of the portfolio, Cromwell is committed to internal property management for its $1.7 billion assets under management.

Notes

All information relates to A Class Units in the Cromwell Riverpark Trust.

(1) Distributions and capital growth are not guaranteed. 
(2) 100% tax deferred distributions forecast to 30.6.12. The proportion of tax deferred distributions 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.
(3) Based on “as if complete” valuation by Landmark White Brisbane Pty Ltd.
(4) Based on 15 year lease from date of practical completion, estimated at June 2010.
(5) From Practical Completion.

Units in the Cromwell Riverpark Trust (“CRT”) are issued by Cromwell Property Securities Limited (ABN 11 079 147 809, AFSL 238052). Application for units can only be made on an application form from  the Product Disclosure Statement (PDS) dated 25 February 2009 which bears a sticker or approved wording confirming that you have received and read the SPDS dated 30 June 2009.  This information has been prepared without taking into account your objectives, financial situation or needs. Therefore, in deciding whether to acquire or continue to hold an investment in CRT, you should consider the PDS as amended by the SPDS and assess, with (or without) your financial or taxation advisor, whether the product fits your objectives, financial situation or needs.

Featured Properties

Riverpark Building

Owner:

Cromwell Riverpark Trust

Sector:

Commercial / Retail

Address:

33 Breakfast Creek Road, Newstead, QLD

Acquisition Date:

09/07/2009

External Valuation:

$173.0m

Valuation Date:

28/01/2008

Book Value:

$173.0m

The Riverpark building is currently under construction with Practical Completion expected by 30 June 2010.