24 June 2015

Masters Parafield, SA

Masters Parafield, Parafield Airport, Main North Road, Parafield, SA

Cromwell Funds Management Limited has acquired a property at Parafield in South Australia on behalf of the Cromwell Direct Property Fund (”the Fund”) with a completion value of $27.25 million.  The Fund has entered into a fixed price development agreement to construct a Masters store located at Parafield Airport, Main North Road, Parafield, SA.

The asset is the first direct property investment for the Fund, which also holds stakes in four of Cromwell’s ‘back to basics’ property trusts.

The property was acquired from GIC Australia, a specialist development group with a strong reputation for delivering user-driven projects.  GIC will develop the Parafield asset.

Masters Parafield is located in close proximity to Parafield Airport, approximately 12km north of the Adelaide CBD in the rapidly evolving metropolitan suburb of Parafield.  The site includes 3.7 hectares of land and has agreements for long-term leases for a Masters home improvement and hardware store (Woolworths) and three smaller retail tenancies with a total lettable area of approximately 17,679 sqm across a single level. The site will provide approximately 456 car spaces and has an estimated net income of $2,261,976 per annum.

The site is currently leased from Parafield Airport on a term of 40 years (with approximately 32.2 years remaining from estimated date of practical completion)

The asset represents an 8.3% per annum passing income at practical completion.  A development coupon will accrue to the Fund at a rate of 7.0% per annum. 

Should you have any questions in regard to this please call Cromwell Investor Services on 1300 276 693.

Disclaimer:
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 correspondence. 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.