Real estate investor and fund manager, Cromwell Property Group (Cromwell), has acquired Chesser House, located at 95 Grenfell Street, Adelaide on behalf of unitholders in the Cromwell Direct Property Fund (DPF or the Fund) for $81.35 million.
Chesser House is an 11-storey A-grade office tower with total net lettable area of 11,121 sqm and a 6.1-year WALE.
The building has undergone significant works which includes the implementation of new end-of-trip facilities, a ground floor lobby upgrade, refurbished lift lobbies and modernised lift cars. A new 93KW solar panel system has also been installed, which generates 17% of the total base building power. This is reflected in the building’s 5-Star NABERS Energy rating.
The Chesser House acquisition strengthens the DPF portfolio and follows its acquisition of two Brisbane CBD assets – 545 Queen Street and 100 Creek Street – in May and October 2021, respectively.
Cromwell’s Head of Retail Funds Management, Peta Tilse, commented, “Chesser House is a fantastic addition to DPF, anchored by the South Australian Attorney’s General Department and blue-chip tenants Serco and CyberCX.
“The Adelaide CBD is set to benefit from significant economic activity as a result of State and Federal Government spending on defence, technology, innovation and biomed. This is headlined by the Department of Defence’s $35 billion Future Frigate project and the $3.6 billion medical precinct, which is set to become the largest health cluster in the Southern Hemisphere.”
DPF currently pays unitholders equivalent to an annualised distribution yield of 5.4% via its exposure to nine high-quality assets across Queensland, New South Wales, Victoria and the Australian Capital Territory .
The Fund continues to be a highly attractive proposition for investors, with more than $50 million of gross inflows coming into the DPF over the past six months, off the back of a strong 12-month performance where the Fund produced total returns of 14.7%.
Ms Tilse added: “Cromwell is seeing very strong demand across its funds management business, with investors seeing Australia as a safe and attractive destination to invest their capital.
“Our retail funds business provides these investors with direct access to high-quality Australian assets, where they can benefit from Cromwell’s proven investment strategy which delivers both strong returns and a regular and reliable income, along with long-term capital growth potential.”