Cromwell has launched a new $276 million Cromwell Property Fund, an open-ended unlisted fund with five properties.
CPF’s portfolio comprises the $120 million 321 Exhibition Street in Melbourne, Victoria; $38 million The Forum Portfolio on the Gold Coast, Queensland; $59 million Homemaker Centre in Prospect, New South Wales; $38 million 43 Bridge Street in Hurstville, NSW and $21.75 million BP twin service station in Victoria.
The initial portfolio has an occupancy rate of 97.5% with a weighted average lease term of 4.3 years.
The fund will target a return of 8 cents per unit per annum.
Cromwell executive chairman Paul Weightman said the new fund would aim to emulate the success of the Cromwell Diversified Property Trust, which was fully subscribed ahead of schedule after investors took up $25 million worth of units in one week.
“The Cromwell Property Fund was created to accommodate investor demand for stable returns and low volatility. The CPF provides attractive stable returns without the risk and volatility inherent in other high yielding product.
“We have taken a conservative and responsible approach to the yield potential of the fund’s portfolio based on the continued strength of the market for properties which fit the fund’s strict acquisition process,” he added.
Weightman said the initial properties in the fund had established a solid foundation for future growth.
“The acquisition strategy for the new fund will be consistent with Cromwell’s philosophy of acquiring properties that we believe will produce a stable income and the potential for capital growth,” he added.
The fund will be managed by Cromwell Property Securities Limited, a wholly-owned subsidiary of the ASX-listed Cromwell Corporation Limited, which currently manages eight property funds with combined assets in excess of $1.3 billion.
By Kathryn O’Meara
