Property company Cromwell Group (ASX:CMW) has launched a new unlisted $93 million property trust called Cromwell Ipswich City Heart Trust.
The trust is a seven-year single property syndicate located in Ipswich in Queensland and the state government is pre-committed to 91 per cent of the lettable area.
A deal has been inked with a subsidiary of Leighton Holdings Limited (ASX:LEI) to develop the commercial office and retail building from early 2012.
Cromwell Group plans to raise up to $49.25 million for the new trust and says the capital raising is expected to generate initial and ongoing funds management fees which will have a positive impact on the company’s future earnings.
Before the announcement shares in Cromwell Group closed 1.52 per cent higher yesterday at $0.67.
In the 2011 financial year Cromwell Group reported a net profit of $88 million.
