CROMWELL PROPERTY GROUP — Capital/Financing Update 2013

Aug 6, 2013

ASX Announcement 7 August 2013

CROMWELL ACQUIRES THREE ASSETS FOR NEW UNLISTED TRUST

Cromwell Property Group (ASX: CMW) is pleased to announce the creation of a new unlisted property trust, Cromwell Property Trust 12 (the Trust), which has contracted to acquire three assets from EPC Pacific Pty Ltd, a direct property, investment and development division of the Pacific Group of Companies.

The assets comprise an existing office building in South Melbourne, Victoria, an office building under construction in Dandenong, Victoria and an industrial building under construction in Direk, South Australia. The combined value is approximately $129 million, with the majority of the purchase price for the under construction assets payable as each is completed.

Units in the new unlisted Trust will be offered under a product disclosure statement to be issued later this year by Cromwell Funds Management Limited (CFM), the responsible entity of the Trust. CFM intends to raise approximately $77 million. The balance of the purchase price will be funded by a debt facility which CFM expects to finalise later this year.

Pending the completion of fund raising for the Trust, Cromwell will provide seed funding of approximately $30 million. This will allow settlement of the acquisition of the South Melbourne building and the land upon which the Dandenong and Direk buildings are being constructed. This seed funding will be progressively repaid as units are issued to investors.

Following the successful completion of the Cromwell Box Hill Trust which closed early and oversubscribed in April 2013, Cromwell anticipates strong demand from direct retail investors and financial advisors for the new Trust.

The assets being acquired by Cromwell Property Trust 12 are:

	Rand Distribution	ATO Building,	Dorcas St, South
	**Centre, Direk **	Dandenong	Melbourne
Address	Lot 902 Caribou Drive,Direk, South Australia	11-13 Robinson St,Dandenong, Victoria	10-16 Dorcas St, SouthMelbourne, Victoria
Status	Under construction.Due for completion inDecember 2013	Under construction.Due for completion inSeptember 2015	Fully leased,recently refurbished
Sector	Industrial	Office	Office
Valuation	$32,750,0001	$70,390,0002	$25,543,0003
**Land Area (m2) **	58,628	3,145	1,484
**Lettable Area (m2) **	10,312	13,803	7,567
Major Tenant	Rand Transport	Australian Tax Office	Dimension Data
Occupancy	100%	100%	100%
WALE (years)	20 (from completion)	14 (from completion)	6 (from 30 June 2013)

1 Based on ‘as if complete’ valuation by CBRE, dated 24 June 2013

2 Based on ‘as if complete’ valuation by Savills, dated 30 June 2013

3 Based on valuation by Savills dated 30 June 2013

Cromwell Property Group (ASX:CMW) comprising Cromwell Corporation Limited (ABN 44 001 056 980) and 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).

Further information and media releases can be found at the Cromwell website: www.cromwell.com.au

Cromwell Property Group (ASX:CMW) ASX Announcement

Cromwell CEO, Paul Weightman, said “The quality of the asset portfolio, size, and acquisition structure make them ideal assets for a new unlisted property trust which will build on the success of Cromwell’s previous unlisted trusts”.

EPC Pacific CEO, Patrick Smith said "We are delighted to be contracting with a team of very professional people at Cromwell and look forward to delivering two high quality, long term properties for their investors.”

EPC Pacific currently has over $300 million of active property development throughout Australia and is also undertaking a programme of transformation and upgrade of a further $200 million of existing investment assets.

ENDS.

Media Enquiries: Cromwell Securityholder Enquiries: Daryl Wilson Investor Services Centre Executive Director 1300 276 693 +61 402 046 883 dwilson@cromwell.com.au invest@cromwell.com.au

This announcement is not financial advice or a recommendation to acquire Cromwell Property Group securities or units in the Cromwell Property Trust 12 (the Trust). This announcement has been prepared without taking into account the objectives, financial situation or needs of any investors. Before making an investment decision prospective investors should consider the appropriateness of the information provided having regard to their own objectives, financial situation and needs and seek such legal, financial and/or taxation advice as they deem necessary or appropriate.

This announcement sets out an intention to register and launch a new managed investment scheme: the Cromwell Property Trust 12. The responsible entity of, and the issuer of units in, the Trust will be Cromwell Funds Management Limited (ACN 114 782 777, AFSL 333214), a wholly owned subsidiary of Cromwell Corporation Limited.

Before making any decision to acquire or hold units in the Trust it is important that an investor reads the Trust’s product disclosure statement ("PDS"). The PDS will be made available when the Trust is first offered to investors, which is expected to be later this year. The PDS, when finalised, will be available from www.cromwell.com.au or by calling Cromwell Investor Services on 1300 276 693.

This announcement contains certain “forward-looking” statements. The words “intends”, "expected”, “proposed”, “forecast”, ”target”, and “will” and other similar expressions are intended to identify forward looking statements. Forward-looking statements, opinions and estimates provided in this announcement are based on assumptions and contingencies which are subject to change without notice. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements. To the fullest extent permitted by law, the Cromwell Property Group and its directors, officers, employees and advisers disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions.

An investment is subject to investment and other known and unknown risks, some of which are beyond the control of Cromwell, including possible delays in repayment and loss of income and principal invested. Cromwell does not guarantee any particular rate of return or the performance of its investment funds nor does it guarantee the repayment of capital or any particular tax treatment. Investors should have specific regard to the risks for the Trust outlined in its PDS when available.

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