01 April 2022

The Cromwell Direct Property Fund (the Fund) has added to its direct property portfolio with the acquisition of Chesser House, located at 95 Grenfell Street, Adelaide at a purchase price of $81.35 million with the final contractual conditions satisfied today (the Acquisition).

Chesser House is an 11-storey A-grade office tower with total net lettable area of 11,121 sqm and a 6.1-year WALE.

The building has undergone significant works which includes the implementation of new end-of-trip facilities, a ground floor lobby upgrade, refurbished lift lobbies and modernised lift cars. A new 93KW solar panel system has also been installed, which generates 17% of the total base building power. This is reflected in the building’s impressive 5-Star NABERS Energy rating.

The asset is anchored by the South Australian Attorney General’s Department, increasing overall portfolio exposure to government tenants to 37%, with additional leases to blue-chip tenants Serco and CyberCX.

The location adds to the geographic diversification of the Fund and is a timely acquisition, with the Adelaide CBD set to benefit from significant economic activity as a result of State and Federal Government spending on defence, technology, innovation and biomed. This is headlined by the Department of Defence’s $35 billion Future Frigate project and the $3.6 billion medical precinct, which is set to become the largest health cluster in the Southern Hemisphere.

The Acquisition is accretive to the Fund’s earnings and takes the Fund’s direct property portfolio to eight assets valued at $667 million, with look-through property exposure to 10 assets with a value of $760 million and a portfolio WALE of 5.1 years.

The Chesser House acquisition builds upon a strong 2021 for DPF, with the Fund acquiring two Brisbane CBD assets - 545 Queen Street and 100 Creek Street – in May and October respectively and will support the Fund’s longstanding track record of paying unitholders a regular, reliable income1.

1Capital growth and income distributions are not guaranteed and are subject to the assumptions and risks contained in the PDS. Past performance is not indicative of future performance.


Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333 214 (CFM) has prepared this update and is the responsible entity of, and the issuer of units in, the Cromwell Direct Property Fund ARSN 165 011 905 (Fund). In deciding whether to acquire or continue to hold an investment you should consider the Product Disclosure Statement (PDS) and assess, with (or without) your financial adviser, whether products fit your objectives, financial situation or needs. A target market determination (TMD) is also available. Applications for units in the Fund can only be made on the application form. The PDS, TMD and application form 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. This content has been prepared without taking account of 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 update. 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 for examples of key risks. Past performance is not indicative 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.