01 July 2020

Cromwell Funds Management (CFM) continues to measure and respond to the impact of COVID-19 on the valuations of directly held property within the Cromwell Direct Property Fund (Fund). Following on from internal valuations of all assets as at 07 April 2020, the assets have now undergone external valuations as at 30 June 2020.

The overall impact of the revaluation has been positive, due to the advancement in COVID-19 rental relief negotiations providing some recovery from the internal mark-downs that occurred on 7 April 2020, in response to the implementation of the mandatory commercial tenancy code of conduct:

PropertyValuation 31 December 2019Valuation 7 April 2020Valuation 30 June 2020% Change April to June
Retail Complex Parafield, SA $29,000,000 $28,120,000 $27,250,000 -3.1%
Bunnings Playford, SA $33,600,000 $32,800,000 $34,700,000 5.8%
64 Allara Street, ACT $18,500,000 $17,000,000 $17,500,000 2.9%
433 Boundary Street, Spring Hill, QLD $48,000,000 $39,500,000 $38,400,000 -2.8%
420 Flinders Street, Townsville, QLD $64,300,000 $62,700,000 $63,800,000 1.8%
163-175 O’Riordan Street, Mascot, NSW $113,300,000 $107,300,000 $114,000,000 6.2%
11 Farrer Place, Queanbeyan, ACT $35,000,000 $34,000,000 $35,500,000 4.4%
Total $341,700,000 $321,420,000 $330,150,000 2.7%

All directly held assets within the Fund were independently valued, other than the Retail Complex at Parafield which is recorded at its sales price.  As at 30 June 2020 the asset had been sold but had not settled.

The Fund also benefitted from increases to indirect holdings in the assets of the Cromwell Riverpark Trust, Cromwell Ipswich City Heart Trust and the Cromwell Property Trust 12.

The increase in value of the assets are expected to affect the unit price for units issued and redeemed in the Fund on and from 1 July 2020.

CFM will continue to monitor the property investment market closely to ensure the pricing of our unlisted assets remains appropriate and that all investors are treated equitably.

If you have any questions or would like to know more about the Cromwell Direct Property Fund, please visit www.cromwell.com.au/dpf or contact Cromwell’s Investor Services Team on 1300 268 078 or email invest@cromwell.com.au

Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (CFM) has prepared this notice and is the responsible entity of, and the issuer of units in, the Cromwell Direct Property Fund ARSN 165 011 905 (Fund). In making an investment decision in relation to the Fund, it is important that you read the product disclosure statement dated 29 September 2017 (PDS) and the supplementary product disclosure statement dated 06 April 2020 (SPDS). The PDS and SPDS are issued by CFM and are available from www.cromwell.com.au/dpf or by calling Cromwell’s Investor Services Team on 1300 268 078. Applications for units in the Fund can only be made on the application form accompanying the PDS. This notice has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and SPDS and assess, with or without your financial or tax adviser, whether the Fund fits your objectives, financial situation or needs. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this notice. If you acquire units in the Fund, CFM and certain related parties may receive fees from the Fund and these fees are disclosed in the PDS

Please note: Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, it may result in reduced distributions and/or a loss of some or all of the capital value of your investment. See the PDS and SPDS for examples of key risks. Past performance is not a reliable indicator of future performance. Forward-looking statements in this update are provided as a general guide only. Capital growth, distributions and tax consequences cannot be guaranteed. Forward-looking statements and the performance of the Fund are subject to the risks and assumptions set out in the PDS and SPDS.