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Cromwell Property Trust 12

Fund Category Property
Minimum Initial Investment $10,000
Expected Close Date CLOSED
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The latest closed-ended 'back to basics' property investment from Cromwell has a commencing distribution of 7.75% p.a1 paid monthly and offers capital growth potential1 and tax-deferred income2.

The Cromwell Property Trust 12 (the Trust) is underpinned by three commercial assets with a combined value of $128.6 million3 and is backed by high quality leases to Government and blue chip tenants with a weighted average lease expiry of 14.5 years4.

Key Features

  • Commencing distribution of 7.75% p.a., paid monthly1
  • Highly tax deferred distributions forecast to June 20171
  • 7-year investment term5
  • Potential for capital growth1
  • Less than 50% gearing ratio

Distributions on the Cromwell Property Trust 12 commence immediately on acceptance of investment application. Due to low interest rates offered by banks and fixed income products, Cromwell expects the Trust to be a highly sought after investment in light of its relative forecast distribution rates:

FORECAST DISTRIBUTIONS

Distributions to

Forecast annual rate (paid monthly)1 Forecast Tax Deferred2
30 June 2014 7.75% 100%
30 June 2015 7.75% 82%
30 June 2016 8.00% 100%
30 June 2017 8.25% 89%

 

Property Portfolio

ATO Building, Dandenong VIC
 

Comprising 55% of the Trust portfolio with an 'as if complete' value of $70,390,0003.

ATO Building Dandenong is a commercial office building under construction and will be 92% leased to the Australian Tax Office. The building is due for completion in September 2015.

 

Dorcas Street, South Melbourne VIC

 

Comprising 20% of the Trust Portfolio, the asset is valued at $25,543,0003

Dorcas Street, South Melbourne is a recently refurbished asset that is fully leased. The building is a 7 level commercial office building fully leased to Dimension Data.

Rand Distribution Centre, Direk SA

 

Comprising 25% of the Trust Portfolio, the asset has an 'as if complete' value of $32,750,0003.

Rand distribution centre is an industrial building under construction in South Australia and will be 100% leased to Rand Transport. It has a 20 year lease commencing from Practical Completion in December 2013.

 

Whilst this Trust replicates many features of other Cromwell unlisted property trusts, the current offer provides the added feature of diversification underpinned by a three asset portfolio.

 

Cromwell Property Group

Cromwell Property Group is an internally managed Australian Real Estate Investment Trust and a fund manager with a proven track record of developing high-quality, high-yielding investment products. The Group has over $3.4 billion in assets under management and manages over 30 properties throughout Australia. The Trust's Responsible Entity is Cromwell Funds Management, a wholly owned subsidiary of Cromwell Property Group.

 

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FEE DISCLOSURE

There are no commissions payable to 2020 DIRECTINVEST on investments in this Fund.

Disclaimers and other important information

Cromwell Funds Management Limited ABN 63 114 782 777, AFSL 333214 (“CFM”) has prepared this correspondence and is the responsible entity of, and the issuer of units in, the Cromwell Property Trust 12 ARSN 166 216 995 (“Trust”). Before making an investment decision in relation to the Trust investors should read the product disclosure statement dated 29 October 2013 (“PDS”). Applications for units can only be made on the application form accompanying the PDS. This correspondence has been prepared without taking into account your individual objectives, financial situation or needs. Therefore, in deciding whether to acquire units in the Trust, you should consider the PDS and assess, with or without your financial or taxation adviser, whether the product fits your objectives, financial situation or needs. Forward-looking statements in this correspondence are provided as a general guide only and subject to the risks and assumptions in the PDS. 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 Trust, CFM will receive fees as disclosed in the PDS.

Risk Disclosure  
Any investment is subject to risk, including an investment in this Trust. Capital growth, distributions and tax consequences cannot be guaranteed. An investment in the Trust is subject to risk and 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.  Examples of key risks include: construction risk, property risk, liquidity risk and economic and market risk as set out in Section 4 of the PDS.  
 

  1. Based on issue price of $1.00 per unit. Distributions, capital growth and tax consequences are not guaranteed and are subject to the assumptions and risks contained in the PDS.
  2. 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. The tax advantaged component of the distribution will depend on the Trust satisfying various requirements including its ability to utilise tax losses incurred in the start-up phase. If the Trust does not satisfy these requirements, the tax advantaged component of the distribution could be materially less.
  3. Based on independent valuations, including two ‘as if complete’ valuations. See Section 11 of the PDS for further information.
  4. Calculated by gross income (assuming practical completion of the Trust’s assets occurs as expected) from the date of the PDS.
  5. Investors may vote to extend the term. See the PDS for further details.

 

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