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CROMWELL PROPERTY GROUP — Capital/Financing Update 2008
Jan 23, 2008
64673_rns_2008-01-23_691856a0-eb15-4a67-94b5-b54d51eb92b3.pdf
Capital/Financing Update
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ASX Announcement January 24, 2008
CROMWELL PORTFOLIO UP $31.2 MILLION ON REVALUATIONS
Property and funds manager Cromwell Group (ASX: CMW) has completed independent revaluations of 10 of its property assets representing approximately 40 per cent of its property portfolio, with the properties increasing in value by $31.2 million or an average of 8.6 per cent.
The revaluations contributed to a 6 per cent increase unaudited NTA (net tangible assets) per stapled security to $1.02, up from $0.96 at 30 June 2007.
Cromwell Group Executive Chairman Paul Weightman said “Cromwell has chosen to focus on quality, non-residential Australian assets with long lease profiles to predominantly blue chip tenants which, despite a volatile market, continue to provide stable income and capital growth potential to our investors.”
The Group’s largest individual property asset by value, the 700 Collins Street commercial office building in Melbourne’s Docklands, gained $22.2 million in value, or 13.8 per cent, to $183.5 million.
The increases exclude the previously announced sale of the RSM Bird Cameron building in Perth to GE Real Estate Investments Australia Pty Ltd for $27.3 million, which will result in a $6 million realised gain being booked for FY08.
Property and Investment Portfolio
Cromwell’s billion dollar property portfolio continues to provide a strong financial platform for the Group. The geographically diversified portfolio of 23 assets has a weighting towards the office sector and includes exposure to a number of markets with potential rental upside. It has a strong weighted average lease term of 5.3 years, with 78 per cent of gross rental income coming from Government or blue chip tenants. The overall weighted average capitalisation rate of the Group’s property portfolio is 7.18 per cent, compared to 7.28 per cent at 30 June 2007.
A summary of the independent property revaluations is shown below.
| Dec-07 | Previous | Valuation | Valuation | New Cap | |
|---|---|---|---|---|---|
| Property | Valuation | Valuation | Gain | Gain | Rate |
| $m | $m | $m | % | % | |
| 700 Collins Street,Melbourne VIC | $183.50 | $161.30 | $22.20 | 13.8% | 6.25% |
| 100 Waymouth Street, Adelaide SA | $42.00 | $38.50 | $3.50 | 9.1% | 7.50% |
| 5-24 Frederick Road, Brooklyn VIC | $41.00 | $41.00 | - | - | 8.00% |
| 19 National Circuit, Barton ACT | $40.75 | $40.75 | - | - | 6.70% |
| 180 Holt Street, Meeandah QLD | $27.30 | $25.00 | $2.30 | 9.2% | 7.00% |
| Huntingfield Avenue, Kingston TAS | $18.10* | $16.50 | $1.60 | 9.7% | 9.25% |
| 179 Collins Street, Hobart TAS | $15.45* | $15.45 | - | - | 8.25% |
| 450-460 Dean Street, AlburyNSW | $12.00 | $10.60 | $1.40 | 13.2% | 8.50% |
| 194-204 Ryrie Street, GeelongVIC | $11.00 | $10.50 | $0.50 | 4.8% | 8.50% |
| 159-163 Brisbane Street, Launceston TAS | $3.10 | $3.40 | ($0.30) | (8.8%) | 8.75% |
| Total | $394.20 | $363.00 | $31.20 | 8.6% |
- Provisional independent valuation amounts. Final valuation report is not expected to differ materially.
ENDS: Media Enquiries to Paul Weightman on (07) 3225 7777 or 0411 111 028
Cromwell Corporation Limited ABN 44 001 056 980
Cromwell Property Securities Limited ABN 11 079 147 809 AFSL 238052
as responsible entity for Cromwell Diversified Property Trust ABN 30 074 537 051 ARSN 102 982 598
Level 19, 200 Mary Street, GPO Box 1093, Brisbane QLD 4001 Telephone 07 3225 7777 Facsimile 07 3225 7788 Email [email protected] Internet www.cromwell.com.au