30 June 2016

The Cromwell Ipswich City Heart Trust (Trust) has received a payout from the Developer, Leightons Properties (Brisbane) Pty Limited (Leightons Properties), on their remaining lease obligations on the mezzanine tenancy and the retail tenancies on Bell Street.   The lease expiry date on the mezzanine tenancy and the retail tenancies was 30 September 2018.  Leighton Properties occupied 7.3% of the net lettable area by income.

Cromwell Funds Management Limited will shortly commence a marketing strategy to find suitable tenants to occupy the vacancies.

Leighton Properties also paid the Trust an adjustment to the Purchase Price as was agreed within the Development Agreement.  The adjustment related to final property outgoing calculations.

As a result of the payout from Leighton Properties an internal valuation saw the property fall by $1m to $109 million, representing a 0.9% fall.  The fall in valuation was a result of the rental received in advance for the Leighton Properties tenancies.  The provisional net tangible asset value (NTA) of the Trust (subject to the annual audit) is forecast to increase slightly to $1.19 per unit at 30 June 2016, largely due to the higher cash balance. 

The final NTA will be available upon completion of the audit (expected to be late August 2016).

If you have any questions, please contact Cromwell Investor Services on 1300 CROMWELL (1300 276 693) or email invest@cromwell.com.au.

Cromwell Funds Management Limited ABN 63 114 782 777 AFSL 333214 (CFM) has prepared this update and is the responsible entity of, and the issuer of units in, the Cromwell Ipswich City Heart Trust ARSN 154 498 923 (Trust). In making an investment decision in relation to the Trust, it is important that you read the product disclosure statement dated 16 December 2011 (PDS). The PDS is issued by CFM and is available from www.cromwell.com.au or by calling Cromwell Investor Services on 1300 276 693. The Trust is not open for investment. This update has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the PDS and assess, with or without your financial or tax adviser, whether the Trust 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 update. If you acquire units in the Trust, CFM and certain related parties may receive fees from the Trust and these fees are disclosed in the PDS.

Please note: Any investment, including an investment in the Trust, 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 Trust are subject to the risks and assumptions set out in the PDS.