Under the agreements:
• the Cromwell Riverpark Trust will acquire the land, fund the construction and retain the asset upon completion at a total cost of approximately $173 million
• FKP Constructions Pty Ltd will construct the building, with completion expected in June 2010.
The building design was awarded a Six Star Green Star Certified Rating under the Green Building Council of Australia’s Green Star – Office Design v2 rating tool, representing “World Leadership” in environmentally sustainable design.
The building will be part of Gasworks, a master planned mixed use precinct which FKP is developing in “Riverpark in Newstead”, a 17 hectare urban community on the Brisbane River. The precinct will feature sophisticated architecture, dedicated community and civic spaces and outstanding access to transport.
The unlisted Cromwell Riverpark Trust is the first of several ‘back to basics’ investment vehicles Cromwell expects to bring to market in 2009, according to Cromwell Group CEO Paul Weightman.
“With world markets continuing to experience volatility and interest rate cuts reducing the returns offered by cash and fixed interest products, we’re creating simple tax effective investment alternatives underpinned by quality Australian commercial property assets,” Mr Weightman said.
“ The Queensland Government owned corporation Energex Limited has pre-committed to 93% of the property for a 15 year lease from the property’s completion.”
“The Riverpark Trust is an outstanding opportunity for people seeking tax effective returns with potential for capital gains. The Trust’s monthly distributions will commence at 8.25%pa moving to 8.5%pa on completion of the Building.”