Cromwell Sells Ipswich City Heart Building

Cromwell Funds Management Limited (CFM), as responsible entity of the Cromwell Ipswich City Heart Trust (the Trust), has sold the Trust’s sole property, located at 117 Brisbane Street, Ipswich at a price of $144.9 million to property funds manager Castlerock.

The decision to sell was made given the $16.4 million premium to the previous book value of $128.5 million and the fact the Trust has less than two years to go to maturity. The sale is unconditional and is expected to settle on 21 October 2021.

Head of Retail Funds Management, Hamish Wehl, commented, “It was a difficult decision to sell the property however, with less than two years to go to maturity, we felt that money-in-the-hand was the right outcome for unitholders.”

Unitholders will receive an initial Special Distribution of approximately $1.75 per unit with the potential for a further minor distribution payable upon wind-up. As at 31 July 2021, the Trust had delivered investors a 14.6% annualised return since inception in December 2011.

“Interest rates have dropped substantially since the Trust was launched in 2011 making it difficult to replace, however, the Cromwell Direct Property Fund currently pays a distribution yield of 5.6%  which we believe is a very attractive rate for investors looking for regular, reliable income,” Mr Wehl said.

The purchaser was introduced by Colliers’ Simon Beirne, State Chief Executive, and Sam Biggins, Queensland Director of Investment Services.

Simon Beirne commented, “Queensland has proven its resilience over the past 18 months and is seeing an increase in allocation of capital from investors across all asset classes to both the south-east corner and key regional markets. With the announcement of the 2032 Olympics, the macroeconomic themes for the State are positive.”

Mr Biggins added, “Castlerock’s acquisition is further evidence of syndicator-capital moving up the price curve into larger office assets in key metropolitan markets in Queensland.

“The Icon transaction represents the largest-ever sale of an office building in Queensland outside of Brisbane, and Castlerock was attracted to the long-term growth prospects of the Ipswich region which is Queensland’s fastest growing LGA,” Mr Biggins concluded.

About the Cromwell Ipswich City Heart Trust

The Trust was launched December 2011 and contains the Ipswich City Heart Building, which was completed in November 2013. The nine-story A-grade building spans 17,870 square metres and encompasses 207 basement level car parks, 120 bicycle parking stations, and high levels of natural light and winter gardens on office floors. The building was Ipswich’s first to be awarded a 5-Star Green Star rating and also holds a 5-Star NABERS rating.  The Trust’s initial term was extended in 2018 giving the Trust a new maturity date of June 2023. If you would like to get in contact with Cromwell Funds Management, call 1300 268 078 or email

1 Based on current distributions of 7.25 cents per unit p.a. and a current unit price of $1.2979 as at 16 August 2021.