LISTED property trust and funds manager Cromwell Group will undertake a $173 million joint venture commercial development at Newstead with FKP Property Group.
The company has launched a PDS to raise up to $91 million in its new unlisted Cromwell Riverpark Trust which has entered into conditional agreements with FKP Property Group to acquire the site at 33 Breakfast Creek Road.
The trust will acquire the land, fund the construction and retain the asset upon completion, while FKP Constructions will construct the building, with completion expected in June 2010
The 30,904 sq m project will be anchored by Energex. The building design was awarded a Six Star Green Star Certified Rating under the Green Building Council of Australia’s Green Star.
The project is part of Gasworks, a master planned mixed use precinct which FKP is developing in Riverpark in Newstead, a 17ha urban community on the Brisbane River. The precinct will feature sophisticated architecture, dedicated community and civic spaces and outstanding access to transport.
Cromwell Group CEO Paul Weightman says the unlisted Cromwell Riverpark Trust is the first of several ‘back to basics’ investment vehicles Cromwell expects to launch to market in 2009.
“With world markets continuing to experience volatility and interest rate cuts reducing the returns offered by cash and fixed interest products, we’re creating simple tax effective investment alternatives underpinned by quality Australian commercial property assets,” says Weightman.
“The Queensland Government-owned corporation Energex Limited has pre-committed to 93 per cent of the property for a 15-year lease from the property’s completion.
“The Riverpark Trust is an outstanding opportunity for people seeking tax effective returns with potential for capital gains.
“The trust’s monthly distributions will commence at 8.25 per cent moving to 8.5 per cent on completion of the building.”
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