SHAREHOLDERS PUT TRUST IN CROMWELL FUND
Written on the 11 October 2012
AN UNLISTED property trust managed by ASX-listed Cromwell Property Group (CMW) has raised approximately $40 million.
The Cromwell Ipswich City Heart Trust was oversubscribed with more than 800 investors each spending an average of $50,000. Applications have closed earlier than expected.
CMW CEO Paul Weightman (pictured) reveals an increase in forecast trust distributions and falling interest rates have generated high interest among first-time investors.
“With the trust’s monthly distributions forecast at 8 per cent per annum and, with expectations of further falls in interest rates, the investment has become extremely attractive to yield-conscious investors,” he says.
“The strong response from investors proves the continuing appeal of simple, transparent, yield-based products underpinned by quality Australian commercial property assets.”
The trust was initially launched as a seven-year property syndicate with distributions commencing at an annual 7.75 per cent plus monthly payments.
However, CMW increased distributions due to popular demand by 0.25 per cent to an annual 8 per cent, effective from July 1.
Weightman claims the fund-raising’s success validates Cromwell’s back-to-basics investment offerings and strong distribution networks.
“With a distribution network of more than 20,000 retail investors, continuing support from many of Cromwell’s 12,000 plus security holders, and relationships with thousands of financial planners, we believe we can continue to grow the business well into the future with this kind of high-quality product,” he says.