Cromwell Funds Management Limited (CFM) has settled the sale of the Parafield Retail Complex in South Australia on behalf of the Cromwell Direct Property Fund (DPF or the Fund) for $27.25 million.
The Parafield Retail Complex, which was completed in May 2016, is a purpose-built retail facility located within the Parafield Airport precinct, just 12 kilometres north of the Adelaide CBD. The site has a net lettable area of 15,776 sqm, with a land area of approximately 37,280 sqm, inclusive of 456 car parking spaces.
Head of Retail Funds Management, Hamish Wehl, said, “The Parafield sale is timely and further strengthens the Fund’s portfolio metrics.”
“DPF’s key objective is to provide investors with a monthly tax advantaged income stream, combined with the potential for capital growth through investing in a diversified portfolio of quality assets.”
“The Fund has low gearing and currently pays investors a distribution yield of 5.9%1 which we believe is an attractive rate for investors, particularly retirees, who are looking for regular, reliable income and an alternative to putting their money into a bank account,” he said.
As at 30 September 2020, the Fund had a 7.1-year weighted average lease expiry across 11 assets, reducing to ten once the sale completes.
1. Based on distributions of 7.25 cents per unit p.a. and a unit price of $1.2327 as at 30 September 2020.