Investment Objective
The objective of the Trust is to provide investors with a minimum distribution yield of 8.25%pa paid monthly over the 7 year term, with the additional benefit of tax deferred distributions and capital growth potential.
The Asset
$173 million1, 7 storey commercial office/retail building being constructed at 33 Breakfast Creek Road, Newstead, just two kilometres from the Brisbane CBD. The site forms part of a new inner-city mixed-use community on the banks of the Brisbane River.
93% of the net lettable area of the property will be leased to Energex Limited until 20252. Energex is one of Australia’s largest and fastest growing electricity suppliers.
The 7% balance of the property will be subject to a five year lease arrangement with a subsidiary of ASX listed FKP Property Group6
Features of the Trust
|
• |
8.25% pa monthly
distributions forecast from
date units are issued,
increasing to 8.50% pa upon
building practical
completion and forecast to
continue to grow |
|
• |
100% tax deferred
distributions forecast to 30
June 20123 |
|
• |
7 year investment term |
|
• |
Sensibly geared with a
55% gearing ratio |
|
• |
Potential for capital growth4 |
|
• |
Simple transparent structure with no capital support of
distributions. |
Features of the
Asset1
|
• |
100% of the net lettable area precommitted |
|
• |
14.1 year weighted
average lease term6 -
7 years past the
proposed end date of the
Trust |
|
• |
$173 million
commercial property asset1 |
|
• |
30,904 sqm net lettable
area |
|
• |
State of the art,
energy efficient building -
Awarded a Six Star Green
Star Certified Rating in
2008 under the Green
Building Council of
Australia’s Green Star –
Office Design v2 rating
tool. |
Investment Details
|
Responsible Entity |
Cromwell Property Securities Limited (CPS) |
|
Capital Raising |
$91 million5 |
|
Proposed Settlement Date |
31 March 2009 |
|
Entry Price |
$1.00 per unit
Units should be issued the business day prior to Settlement Date. Units will not be issued, and application monies will be returned, if certain conditions are not met. |
|
Minimum Initial Investment |
$10,000 |
|
Stamp Duty Saving |
By acquiring the land prior to Practical Completion of the building, the Trust saves approx $8.3 million in stamp duty resulting in a significantly improved NTA upon completion. |
All information relates to A Class Units in the Cromwell Riverpark Trust.
(1) Based on “as if complete" valuation by Landmark White Brisbane Pty Ltd.
(2) Based on 15 year agreement for lease from date of practical completion, estimated at June 2010.
(3) 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 Trust.
(4) Capital growth is not guaranteed.
(5) $91 million to be raised includes A Class Units to be offered to retail and B Class Units to be offered to certain significant wholesale investors under a separate offer document.
(6) From Practical Completion.
Units in the Trust are issued by Cromwell Property Securities Limited ABN 11 079 147 809, AFSL
238052. Before making an investment decision in
relation to the Trust investors should read the
Product Disclosure Statement dated 25 February 2009,
which is available above. This information has been prepared without taking into account your objectives, financial situation or needs. Therefore, in deciding whether to acquire an investment in the Trust, you should consider the PDS and assess, with or without your financial or taxation advisor, whether the product fits your objectives, financial situation or needs.
