Cromwell Riverpark Trust (Limited Offer - 8.25% pa)

With interest rate cuts reducing the yields offered by cash and fixed interest, Cromwell has created a simple, tax effective investment alternative offering a starting income of 8.25%pa with the potential for capital growth.

We featured Cromwell in our end of year newsletter in 2008 as one of our favoured unlisted property fund managers. We feel their latest offer, the Cromwell Riverpark Trust, is worth considering.

Investors who steered clear of the sharemarket did well in 2008. Term deposits, were buoyed by a desperate scramble for inflows by the banks and interest rates were still relatively high earlier in the year. (We secured 8.40% on our own cash allocation in July last year).

Since then, huge amounts of money have been injected into the banking system by governments, institutional and retail investors and governments throughout the world have slashed interest rates to the point that you're now lucky to see a 4% return on a term deposit.

Alternatives to cash

With the coming year looking as though its going to continue in the same vein, for many, the value of leaving money on deposit becomes questionable and are looking towards alternative investments to provide a return.

I would argue that now is not a time to throw caution to the wind, with experts predicting further falls in the markets this year and cuts in dividends across the board. Investors relying upon their investments to provide a stable income would do well to consider some of the higher yielding, lower risk alternatives that are coming to market.

Tax effective income of 8.25% pa

Established property managers such as Cromwell have been successful in sourcing property opportunities, having successfully built their portfolio to over $1.7 Billion in assets under management since 1998. Their latest offering, the Cromwell Riverpark Trust, provides investors with the opportunity to take advantage of a commercial office building currently being constructed with 100% tenancy agreements¹ in place (93% - under a 15 year lease to Queensland Government owned corporation Energex Limited, 7% - under a 5 year lease to ASX listed FKP Property Group).

With an initial return of 8.25%² pa and forecast to continue to grow, we feel Cromwell's latest opportunity is one of the best opportunities currently available to those looking for income.

Furthermore, investors will further benefit from 100% tax deferred distributions (forecast) to 30 June 2012³ and potential for capital growth⁴.

This is a limited offer with an anticipated close date of the 31st March 2009 (may be extended to 30th June 2009).

All information relates to A Class Units in the Cromwell Riverpark Trust. (1) Based on agreements for lease from date of practical completion, estimated at June 2010. (2) Forecast performance. (3) The proportion of distributions that are tax deferred is dependent on a number of factors (for example building amortisation and depreciation of plant and equipment) and may vary from year to year. Deferred tax may be payable, in whole or in part, on the sale, transfer or redemption of units in the Trust. (4) Capital growth is not guaranteed