$173 million, 7 storey commercial office/retail building being constructed at 33 Breakfast Creek Road, Newstead, just two kilometres from the Brisbane CBD. The site forms part of a new inner-city mixed-use community on the banks of the Brisbane River.

93% of the property when complete has been leased to utilities provider Energex Limited until 2025. Energex is one of Australia’s largest and fastest growing electricity suppliers.

The 7% balance of the property will be subject to a five year lease arrangement with a subsidiary of ASX listed FKP Property Group⁵.

FEATURES OF THE TRUST

Initial 8.25% pa distributions from Wednesday 8 July 2009, increasing to 8.50% pa upon building practical completion

Monthly distributions 

100% tax deferred² distributions forecast to 30 June 2012

7 year investment term

Sensibly geared with a 55% gearing ratio

Potential for capital growth

Simple transparent structure with no capital support of distributions.

FEATURES OF THE ASSET 

100% of the net lettable area precommitted

14.1 year weighted average lease term 

Energex lease will end 7 years past the proposed end date of the Trust

$173 million commercial property asset

30,904 sqm net lettable area

State of the art, energy efficient building 

Given a Six Star Green Star Certified Rating in 2008 under the Green Building Council of Australia’s Green Star – Office Design v2 rating tool

The Cromwell Phoenix Property Securities Fund (“the Fund”) is an unlisted fund that gives investors exposure to a diversified portfolio of predominantly ASX listed property securities (A-REITs¹) selected by its investment manager Phoenix Portfolio Pty Ltd ("Phoenix"). It aims to provide a total return (after management fees) in excess of the S&P/ASX 300 A-REIT Accumulation Indes while delivering lower total risk (as measured by volatility of returns) over the medium to long term.

Access to Investment Manager - Phoenix Portfolios Pty Ltd

Cromwell has appointed boutique equity investment manager Phoenix Portfolios Pty Ltd (“Phoenix”) to manage the Fund’s investments. Under the exclusive arrangement, retail investors can now access Phoenix’s established property securities research and investment skills, previously only accessible to institutional investors.

Strategic Capacity Constraint

To allow greater opportunity for benchmark outperformance, Phoenix has set a strategically determined capacity constraint across all its funds of 1.5% of the A-REIT Index. This is intended to allow rapid portfolio readjustment in response to changing circumstances and enable investment in smaller stocks often overlooked by larger managers. Phoenix believes small stocks often offera higher capability to deliver above average growth in earnings.

Diversified Portfolio

The Fund provides access to a broad range of ASX-listed property securities giving exposure to, among others, the retail, industrial and commercial sectors. It is expected that at least 20 securities will be held at aany time.

Benchmark Unaware Portfolio

Whilst benchmarking its performance against the S&P/ASX 300 A-REIT Accumulation Index, the Fund is not constrained by the index composition. Whilst the index currently is more than 50% comprised by one security, Westfield Limited, the Fund may only invest 20% in any one security, reducing stock specific risk and increasing the opportunity for active returns.

Low fees

There are no entry or exit fees. Cromwell currently charges an ongoing management fee of just 0.82% per annum of net assets, with total ongoing costs and fees of just 0.97% per annum.

Quarterly Distributions

Distributions are paid quarterly or can be reinvested to compound growth.

Liquidity

Daily withdrawals usually paid within five business days.

Potential for capital growth

^{Minimum investment $20,000}

Disclaimer: Information provided by Rebate Financial Services on this fund manager and its products is either factual or concerns observations of investor behaviour. This infotmation is not intended to be, and should not be considered to be recommendations or advice. If you require advice please contact your financial advisor, or contact Rebate Financial Services for a referal to one.