Cromwell launches new $129 million unlisted property trust

Commercial property investors will be offered the opportunity to invest in a new $129 million unlisted property trust comprising office and industrial buildings in Adelaide and Melbourne created by Queensland-based A-REIT Cromwell Property Group.

Cromwell will seek to raise $77 million from investors for Cromwell Property Trust 12, which is contracted to acquire three assets from EPC Pacific, a direct property, investment and development division of the Pacific Group of companies.

The assets comprise an existing $25.5 million office building in South Melbourne, a $70.3 million office building under construction in Dandenong, Victoria to be leased to the ATO and a $32.3 million industrial building under construction in Direk, South Australia.

All three buildings are 100% leased with weighted-average lease expiries (WALEs) ranging from six years to 20 years.

The combined value is approximately $129 million, with the majority of the purchase price for the under construction assets payable as each is completed.

The launch of the new unlisted trust follows the successful completion of the Cromwell Box Hill Trust which closed early and oversubscribed in April 2013.

Cromwell anticipates strong demand from direct retail investors and financial advisors for the new Trust.

"The quality of the asset portfolio, size, and acquisition structuremake them ideal assets for a new unlisted property trust which will build on the success of Cromwell’s previous unlisted trusts," says Cromwell CEO, Paul Weightman.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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