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Rebate Offer
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3.0% (75%)
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Minimum Initial Investment
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$10,000
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Expected Close Date
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CLOSED
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Description
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The Cromwell Riverpark Trust is a back to basics, single property syndicate which invests in a state of the art environmentally friendly building.
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The Cromwell Riverpark Trust is a back to basics, single property syndicate which will own a $173 million1 commercial office building currently under construction in Brisbane. The Riverpark Building is a state of the art environmentally friendly building located just two kilometres from the Brisbane CBD. The Riverpark Building has the Queensland Government owned corporation Energex Limited as the major tenant (precommitted for a 15 year lease2 over 93% of the net lettable area of the building). The balance of the property is the subject of lease arrangements with a subsidiary of FKP Property Group.
The investment objective is to provide investors with a forecast minimum distribution yield of 8.25% pa paid monthly over the seven year term, with the additional benefit of tax deferred distributions and potential capital growth.
Benefits of the Cromwell Riverpark Trust:
- 8.25% pa distributions paid monthly from the Issue Date forecast to increase to 8.50% pa upon practical completion and continue to grow over the life of the Trust2
- 100% tax deferred distributions for the forecast period to 30 June 2012 and expected to be significant thereafter3
- 7 year term
- 100% of net lettable area precommited - 14.1 year weighted average lease term from practical completion
- Certified environmental design
- Potential for capital growth4
Limited Offer
Cromwell Property Securities Limited is seeking to raise $91 million to be used in combination with a bank loan to buy the land and fund the construction of the Riverpark Building. The gearing ratio on completion of construction of the Riverpark Building is expected to be a sensible 55%.
The Riverpark Building has been awarded a Six Star Green Star Certified Rating in 2008 under the Green Building Council of Australia’s (GBCA) Green Star – Office Design v2 rating tool. Under the GBCA Green Star rating tool, Six Stars is the highest rating and represents “World Leadership”, setting a new benchmark in environmentally sustainable development and workplace design.
Cromwell Property Securities Limited as the responsible entity has advised an extension of the offer period to 23 December 2009 with investors to receive a return of 8.25% pa commencing 1 July 2009.
Footnotes
All information relates to A Class Units in the Cromwell Rivepark Trust. (1) Based on "as if complete" valuation by Landmark White Brisbane Pty Ltd. (2) Based on 15 year 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.
Units in the Cromwell Riverpark Trust ("CRT") are issued by Cromwell Property Securities Limited (ABN 11 079 147 809 AFSL 238052). Application for units can only be made on the application form in the product disclosure statement (PDS) dated 25 February 2009. This information has been prepared without taking into account your objectives, financial situation or needs. Therefore, in deciding whether to acquire or continue to hold an investment in CRT, you should consider the DDS and assess, with or without your financial or taxation adviser, whether the product fits your objectives, financial situation or needs.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 75% of the 4.0% upfront commission on investments in the Cromwell Riverpark Trust as additional units. 2020 DIRECTINVEST will retain 1.0% to cover the costs of marketing, postage & handling and administration of this fund. No trailing commission is paid on the Cromwell Riverpark Trust. |
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