CROMWELL BUILDS NATIONAL PORTFOLIO
26 June 2015,
TRANSFORMATION of assets has continued to yield strong results for Cromwell Property Group (ASX:CMW) with the investor reporting positive activity ahead of the new financial year.
Cromwell has repositioned its assets to focus on attracting high-end tenants, and has negotiated more than 60 leases in FY15.
TechnologyOne and Bechtel have renewed head office tenancies at HQ North Tower in Brisbane, while Leighton Holdings has exercised a five-year option in Sydney from March 2016.
The Australian Tax Office and Metro Trains have also recently commenced leases in Melbourne.
Cromwell CEO Paul Weightman says this has been an excellent result for the company.
"These are just a few examples of what has been a busy year for the leasing team," Weightman says.
"As a result of recent leasing activity, Cromwell's weighted average lease expiry has been maintained at just under six years."
Weightman says the company has built a strong reputation for delivering major asset transformations, since facilitating the Qantas global headquarters in Sydney.
Cromwell Direct Property Fund has acquired a property at Parafield in South Australia with a completion value of $27.25 million. A Masters store has been earmarked for the location.
The company will also aggregate Borrowdale House and Woden Lovett Tower in the ACT into a single property to boost amenities for tenants.
Development approval for a $130 million revitalisation of Northpoint Tower in Sydney has also been secured. The project will include a boutique hotel, major retail tenant and specialty stores.
"This financial year has been transformative for Cromwell," Weightman says.
"The redevelopment and transformation of carefully selected properties can significantly enhance their value and generate additional income for investors.
"We are seeing significant activity from Valad Europe, and as a Global Real Estate Investment Manager - we have access to a range of exciting opportunities."Cromwell's direct property investment portfolio in Australia is valued at $2.2 billion.