Cromwell Ipswich City Heart Trust (Trust) unitholders have voted to approve both resolutions required to implement the Rollover Proposal, as detailed in the Notice of Meeting and Explanatory Memorandum dated 22 August 2018.

A successful ‘For’ vote on Resolution 1 extends the Trust Term by four and a half years, until 28 June 2023.

In addition, a successful ‘For’ vote on Resolution 2 results in the approval of the proposed amendments to the Trust’s Constitution by way of a Supplemental Deed.

The result of the vote at the meeting is as follows:

Resolution 1 – Further Term Resolution (Extraordinary Resolution)

  • 40,114,888 votes in total were cast, the equivalent of 83.82% of the total votes that may have been cast by Trust unitholders eligible to vote on the resolution.
  • 39,480,763 units (630 unitholders) voted in favour of Resolution 1 (For), representing 82.49% of the total votes that may have been cast by eligible unitholders (thus exceeding the required 50%).
  • 634,125 units (26 unitholders) voted against Resolution 1 (Against), representing 1.32% of the total votes that may have been cast by eligible unitholders.
  • 65,000 units (2 unitholders) abstained from voting on Resolution 1.

Resolution 2 – Constitutional Amendment Resolution (Special Resolution)

  • 40,009,818 votes in total were cast.
  • 39,696,043 units (637 unitholders) voted in favour of Resolution 2 (For), representing 99.22% of the total votes cast by eligible unitholders (thus exceeding the required 75%).
  • 313,775 units (16 unitholders) voted against Resolution 2 (Against), representing 0.78% of the total votes cast by eligible unitholders.
  • 170,070 units (5 unitholders) abstained from voting on Resolution 2.

As a result, the successful ‘For’ vote on Resolution 2 effectively sets in motion the Matching Facility, allowing unitholders that nominated to either buy or sell units to do so (subject to scale back).

The interest from Unitholders was overwhelmingly popular, with applications to purchase additional Units in the Trust far exceeding those units offered for sale.

Due to the high demand for additional units, all purchasers received 20.51% of Units applied for in the Matching Facility.

Unallocated funds for over-subscriptions have now been refunded to purchasing Unitholders’ nominated distribution accounts, and a remittance advice detailing the refund was sent by either mail or email on 10 October 2018, depending on the Unitholder’s communication preferences.

As outlined in Section 5.3 of the Notice of Meeting and Explanatory Memorandum dated 22 August 2018, the Cromwell Direct Property Fund (the DPF) also participated in the Matching Facility, offering to buy at least 20% of issued Units. The DPF’s application was also scaled back at the same rate as other purchasing Unitholders under the Matching Facility.

Matching Facility finalised

On 1 November, the Matching Facility was finalised, with the transfer of Units to purchasing Unitholders completed and selling Unitholders receiving the proceeds from sale of their Units.

Specific details of Units purchased and sold were forwarded in an updated Unitholder statement following settlement of the Unit transfer, which occurred on 1 November 2018 along with the payment of sale proceeds.

Cromwell Funds Management Limited would like to thank all Cromwell Ipswich City Heart Trust Unitholders for their support throughout the voting process.

If you have any questions in relation to the vote or your resulting unit balance, please contact Cromwell’s Investor Services Team on 1300 268 078.

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 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), and Notice of Meeting and Explanatory Memorandum dated 22 August 2018. The PDS is issued by CFM and is available from www.cromwell.com.au/ich or by calling Cromwell’s Investor Services Team on 1300 268 078. The Trust is not open for investment. 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 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 notice. 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 a reliable indicator 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 Trust are subject to the risks and assumptions set out in the PDS.