Cromwell Funds Management Limited (CFM), as responsible entity of the Cromwell Ipswich City Heart Trust (the Trust), has sold the Trust’s sole property, located at 117 Brisbane Street, Ipswich at a price of $144.9 million to property funds manager Castlerock sold by Colliers Simon Beirne and Sam Biggins.
Cromwell Funds Management Limited (CFM), as responsible entity of the Cromwell Ipswich City Heart Trust (the Trust), has sold the Trust’s sole property, located at 117 Brisbane Street, Ipswich at a price of $144.9 million to property funds manager Castlerock sold by Colliers Simon Beirne and Sam Biggins.
The decision to sell was made given the $16.4 million premium to the previous book value of $128.5 million and the fact the Trust has less than two years to go to maturity. The sale is unconditional and is expected to settle on 21 October 2021.
Head of Retail Funds Management, Hamish Wehl, commented; “It was a difficult decision to sell the property however, with less than two years to go to maturity, we felt that money-in-the-hand was the right outcome for unitholders,” he said.
Unitholders will receive an initial Special Distribution of approximately $1.77 per unit with the potential for a further minor distribution payable upon wind-up. As at 31 July 2021, the Trust had delivered investors a 14.6% annualised return since inception in December 2011.
The purchaser was introduced by Colliers’ Simon Beirne, State Chief Executive, and Sam Biggins, Queensland Director of Investment Services. “Queensland has proven it’s resilience over the last 18 months and is seeing an increase in allocation of capital from investors across all asset classes to both the South-east corner and key regional markets. With the announcement of the 2032 Olympics the macroeconomic themes for the State are positive” added Mr Beirne.
Mr Biggins added “Castlerock’s acquisition is further evidence of syndicator-capital moving up the price curve into larger office assets in key metropolitan markets in Queensland. The Icon transaction represents the largest-ever sale of an office building in Queensland outside of Brisbane and Castlerock were attracted to the long-term growth prospects of the Ipswich region which is Queensland’s fastest growing LGA.”
“Interest rates have dropped substantially since the Trust was launched in 2011 making it difficult to replace however Cromwell’s Direct Property Fund currently pays a distribution yield of 5.6% which we believe is a very attractive rate for investors looking for regular, reliable income,” Mr Wehl added.
To request a sales analysis please contact either of the selling agents via the below contact details.