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Find out the latest updates and insights

With the latest news and research, you'll be able to find out what's happening in Insight.

Insight magazine

Welcome to this quarter’s digital Insight magazine.

In this edition, we examine the methodologies, processes, and outcomes of commercial property valuations; we examine how our team actively manage Cromwell Direct Property Fund’s Chesser House asset; we follow the progress made on the Cromwell Direct Property Fund’s ESG commitments; and we take a closer look at investment in healthcare property.

You can stay up to date with the latest Cromwell and market updates by signing up to receive Insight via email each month.

Happy reading!

Feature articles Latest news Market updates Quarterly reports

Feature article

An introduction to property valuations

A commercial property valuation is the most reliable way of determining the market value of an income-producing property – it serves as an important, professionally backed tool for owners, investors, banks, regulators, and other interested parties.

Read more

Feature articles

Actively managing our assets: 95 Grenfell Street, Adelaide
Chesser House at 95 Grenfell Street, Adelaide, was acquired by Cromwell Funds Management in April 2022 for $81.35 million, on behalf of Cromwell Direc…
Discover More
ESG improvements key to Cromwell Direct Property Fund longevity
Cromwell Property Group is continuously looking at ways to increase the value of our properties – and generate long-term income – while progressin…
Discover More
An essential and resilient sector: why healthcare property
The healthcare and social assistance sector is an essential and growing industry, accounting for 8% of the Australian economy and 16% of employment….
Discover More

Latest news

Each month, Cromwell consistently makes progress towards our business goals, which means new and exciting announcements for investors. Insight magazine’s latest news section has the most recent Cromwell developments, and more.

Previous news available here.

Cromwell Healthcare Property Fund – open for investment
Cromwell sells European fund management platform
Cromwell sells Polish Retail Fund
Cromwell Links new loan facility to emissions reduction, gender pay gap targets
Select an option
  • Cromwell Healthcare Property Fund – open for investment
  • Cromwell sells European fund management platform
  • Cromwell sells Polish Retail Fund
  • Cromwell Links new loan facility to emissions reduction, gender pay gap targets

Cromwell Healthcare Property Fund – open for investment

 

Cromwell Funds Management’s latest property investment opportunity, the Cromwell Healthcare Property Fund is now open for investment.

The Cromwell Healthcare Property Fund aims to provide investors with an average income distribution for the initial 5 years of over 7% per annum¹ with the potential for capital growth. The Fund replicates many features of Cromwell’s other single-asset unlisted property trusts, including a strong tenant profile and long lease term.

Key characteristics:

  • 6.1 years of contracted income, with a long weighted average lease expiry
  • 100% occupied by a South Australian Government healthcare operator
  • Strategic location – located in the fasted growing region in South Australia

For more information about the new fund, and to obtain a copy of the PDS and TMD, visit www.cromwell.com.au/invest/latest-investment-opportunities/cromwell-healthcare-property-fund.

1. Forecast distribution yield on issue price starting at 7% p.a. until 30 June 2026 with the potential for capital growth over the period of investment. Income distribution, capital growth and return of capital is not guaranteed and is subject to the assumptions and risks included in the Fund’s PDS and TMD.

Cromwell sells European fund management platform

 

On 23 May, Cromwell announced that the business has entered into a binding agreement for the sale of Cromwell’s European fund management platform and associated co-investments for a total consideration of €280 million/$457 million to Geneva-headquartered Stoneweg SA Group.

Stoneweg is multi-strategy real estate investment manager with over €4.0 billion of assets under management.

The Transaction covers all components of Cromwell’s European business, excluding the Cromwell Polish Retail Fund assets, which were subject to a separate sale process, which completed on 15 May 2024 in Europe.

The sale of our European assets is consistent with the Group’s commitment to simplify the business to transition to a capital-light funds management model. The exit from the European business allows Cromwell to focus on its core competencies in Australia and New Zealand – and positions the platform for future growth.

Full story here.

Cromwell sells Polish Retail Fund

 

In-mid May, Cromwell announced the sale of six retail centres across Poland, held by the Cromwell Polish Retail Fund for €285 million / $465 million, which is in line with asset valuations announced at HY24 results.

The purchaser, Star Capital Finance, is a diverse real estate investor based in Prague, Czechia.

This follows the sale of Cromwell’s 50% share of its joint venture retail asset in Ursynów, Poland, which completed on 29 February 2024, to joint venture partner Unibail Rodamco for €41.5 million / $69 million.

These transactions are a crucial step in the Group’s continued simplification through the sale of non-core assets to de-risk the business, reduce gearing and realign to Cromwell’s core fund and asset management capabilities.

Full story here.

Cromwell Links new loan facility to emissions reduction, gender pay gap targets

 

In early June, Cromwell completed the conversion of a multi-bank, $1.2 billion lending facility to a sustainability linked loan that includes ambitious targets in reducing emissions and our gender pay gap. Central to the new loan structure is:

  1. Greenhouse gas reductions, in line with Cromwell’s target for net zero scope 3 emissions by 2045, to reinforce the company’s position as an industry leader in reducing scope 3 emissions.
  2. Additional targets linked to our target of net zero scope 1 and 2 emissions by 2035.
  3. To reduce our gender pay gap to a maximum of 12% by 2028. This target forms part of Cromwell’s broader diversity commitments, which include maintaining pay parity across all roles, and maintaining 40:40:20 gender targets across all leadership levels within the organisation.

Cromwell’s Group Head of ESG, Lara Young, said that the new sustainability linked loan has created an opportunity to highlight the business’s focus on several critical topics, as part of its broader environmental, sustainability, and governance policy.

“We have been working with tenants and suppliers across all our upstream and downstream business activities – covering our entire supply chain of tenant activities; funds under management; joint ventures; and embodied carbon sources –  to stretch our net zero approach beyond our operational control,” said Ms. Young.

“The progression we have made in this space has allowed us to set our most ambitious target to date, as part of this new sustainability linked loan – to reduce scope 3 greenhouse gas emissions intensity to equal, or less than, 30.16 (kgCO2e/m2) by 2028.”

“Importantly, by leveraging sustainability linked debt at the same time as meeting important social milestones, Cromwell Property Group can move significantly closer to meeting our current and future ESG responsibilities, including a Cromwell portfolio Net Zero Scope 1 and 2 target by 2035.”

Market updates

March 2024 direct property market update

The disinflation cycle is in the ‘last mile’, where monetary policy is being finely calibrated and market expectations can move month-to-month with…
Read more
March 2024 quarter ASX A-REIT market update

The S&P/ASX 300 A-REIT Accumulation Index continued its march higher in the first quarter of 2024, gaining 16.2%. Property stocks meaningfully outperformed…
Read more

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Quarterly Fund Reports

As at 31 March 2024.

Cromwell Direct Property Fund
Cromwell Phoenix Property Securities Fund
Cromwell Phoenix Global Opportunities Fund
Cromwell Phoenix Opportunities Fund
Cromwell Property Trust 12
Cromwell Riverpark Trust

The information in this section of the website is provided for the use of licensed financial advisers and wholesale investors only. In no circumstances is it to be used by a potential investor for the purposes of making a decision about a financial product or class of products. Any advice is not personal advice and has been prepared without taking into account investors objectives, financial situation or needs.

By electing to continue, you confirm that you are a licensed financial adviser or a wholesale investor.

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