03 September 2013
Cromwell Property Group (ASX: CMW) has launched a new unlisted property investment, the Cromwell Direct Property Fund (the "Fund"), to satisfy market demand for a property investment vehicle capable of providing monthly income from a portfolio of quality property assets.
The Fund, which has a suggested investment timeframe of seven years, will commence monthly distributions at 7% pa1 (based on a $1.00 unit price) and offer a tax-advantaged income stream2 combined with the potential for capital growth1.
The Fund aims to provide a total return in excess of its benchmark, the PCA/IPD Australian Pooled Property Fund Index - Unlisted Retail, which measures the total returns of a range of unlisted property trusts managed by a variety of fund managers throughout Australia.
CEO Paul Weightman said that exposure to quality property was an essential part of any well diversified portfolio.
In an economic environment which continues to see low growth and historically low cash rates, this Fund offers an attractive alternative," Mr Weightman said.
Investors in the Fund will gain exposure to the income derived from each of Cromwell’s four existing property trusts which own, or have contracted to acquire, six properties across Queensland, Victoria and South Australia.
Mr Weightman said the make-up of the initial investment portfolio would provide investors with diversification and access to a strong income stream from six properties.
As the Fund grows, we will continue to target assets in Australian capital cities and major regional centres, with a focus on quality tenants, long leases and newer assets with strong after tax returns."
The Fund intends to offer a limited monthly withdrawal facility from July 2015 and a full withdrawal opportunity from July 2020 and every three years thereafter.
Cromwell has flagged it intends to launch additional property funds before the end of the year, including the Cromwell Property Trust 12 which recently contracted to acquire three assets and will form part of the Cromwell Direct Property Fund’s initial investment portfolio.
Cromwell Investor Services:
Investor Services Centre
CROMWELL DIRECT PROPERTY FUND OVERVIEW
Type of Fund
Unlisted direct property fund
Cromwell Funds Management Limited
Limited monthly withdrawal facility from July 2015 and
$10,000 minimum initial investment
PCA/IPD Australian Pooled Property Fund Index - Unlisted Retail
Calculated daily. For current unit price, visit
0.60% pa of gross assets4
Cromwell Funds Management Limited ABN 63 114 782 777, AFSL 333214 ("CFM") has prepared this correspondence and is the responsible entity of, and the issuer of units in, the Cromwell Direct Property Fund ARSN 165 011 905 ("the Fund") and the trustee of the Cromwell Property Trust 12 ("C12"). Before making any decision to acquire or hold units in the Fund, it is important that you read the product disclosure statement dated 21 August 2013 ("PDS"). Before making any decision to acquire or hold units in C12, it is important that you read the product disclosure statement ("PDS") which is expected to be made available by the end of September 2013. The PDSs are issued by CFM and available from www.cromwell.com.au/funds or by calling Cromwell Investor Services on 1300 276 693. Applications for units can only be made on the application form accompanying the PDS. This correspondence contains a summary of the offer of units in the Fund and C12 and has been prepared without taking into account any investor’s objectives, financial situation or needs. Before making an investment decision, investors should consider the relevant PDS and assess, with or without a financial or tax adviser, whether the product is appropriate given the investor’s objectives, financial situation and needs. Forward-looking statements in this correspondence are provided as a general guide only and subject to the risks and assumptions in the relevant PDS. CFM and its related bodies corporate, and their associates, do not receive any remuneration or benefits for the general advice given in this flyer. If you acquire units in the Fund or C12, CFM will receive fees as disclosed in the relevant PDSs.Any investment is subject to risk, including an investment in this Fund. Capital growth, distributions and tax consequences cannot be guaranteed. An investment in the Fund is subject to risk and 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. Examples of key risks include: construction risk, capital expenditure risk, borrowing risk and economic and market risk as set out in Section 4 of the PDS.
1. Distributions, capital growth and tax consequences are not guaranteed and are subject to the assumptions and risks contained in the PDS.
2. The proportion of distributions that are tax deferred 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 Fund.
3. CFM reserves the right to vary minimum amounts. Indirect investors should contact their IDPS operator for minimum transaction and balance requirements, reinvestment policies, fees and other cost information.
4. An Indirect Cost Ratio of 1.85% is expected based on the initial investment portfolio inclusive of fees charged by CFM in underlying funds.