Cromwell Healthcare Property Fund
Government leased medical centre in Elizabeth SA forecasting initial distributions of 7.0% p.a.
Core Property has reviewed the Cromwell Healthcare Property Fund, a new unlisted property fund managed by Cromwell Funds Management Limited, which forms part of Cromwell Property Group (ASX: CMW).
The Fund provides an opportunity to invest in a government leased medical centre in Elizabeth, South Australia. The key investment metrics include:
- The Property is a purpose built medical centre that forms part of the South Australian Government's strategy to deliver increased health services to the community and alleviate the pressure on nearby hospitals.
- The Property has a lease expiry in 6.1 years, with high usage as a GP practice as well as a range of government healthcare services.
- The Manager is targeting distributions of 7.0% p.a. in FY25 and FY26, paid monthly. Income is underpinned by the strong goverment lease with debt fully hedged for 3 years.
The Fund is a registed managed investment scheme with ASIC and is seeking to raise $27.8M through the issue of 27.8M units at $1.00 per unit, with a minimum investment of $10,000.
Core Property has rated the Fund as RECOMMENDED.