02 December 2015
The Cromwell Direct Property Fund (“the Fund”) has acquired a 4.1 hectare site in Munno Para West (Angle Vale), South Australia and entered into a fixed price development agreement with GIC Australia to construct a Bunnings Warehouse with a forecast as complete value of $27.5 million.
The acquisition will reflect a yield of 6.45% per annum on passing income from a long term lease to Wesfarmers Limited subsidiary Bunnings. The Fund will also earn 7.0% per annum on the funds deployed for development until practical completion.
The asset is the third direct property investment for the Fund, which also holds stakes in four of Cromwell’s ‘back to basics’ property trusts.
The finished asset will have a total lettable area of approximately 16,580 sqm and provide in excess of 400 car spaces for customers in the high growth area.
The project will generate approximately 200 jobs during the construction phase and in excess of 180 jobs post completion.
The site was acquired from, and will be developed by, GIC Australia, a specialist development group with a strong reputation for delivering user-driven projects.
The Munno Para West (Angle Vale) property is strategically located approximately 30 kilometres north of Adelaide CBD within the Playford Alive urban renewal project. The project has an estimated value of more than $1 billion and is being led by the Government of South Australia in partnership with the City of Playford. It has a population growth target of 169,000 people by 20381.
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 21 August 2013 (“PDS”) and the supplementary product disclosure statement dated 28 May 2014 (“SPDS”). The PDS and SPDS are issued by CFM and are available from www.cromwell.com.au/dpf or by calling Cromwell Investor Services on 1300 276 693. Applications for units in the Fund can only be made on the application form accompanying the PDS with approved wording, or an approved sticker, confirming that the applicant has received, read and understood the SPDS. 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 and SPDS.
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 indicative of future performance. Forward-looking statements in this notice 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