Cromwell spends $42 million on Brisbane tertiary education offering

Global real estate investment manager Cromwell Funds Management has purchased 433 Boundary Street in Spring Hill.

It provides unitholders of the Cromwell Direct Property Fund (DPF) exposure to the booming higher education market in Brisbane.

The major tenant, International Education Services (IES), works in partnership with organisations such as the University of Queensland to offer educational services for international students and education professionals.
 
Acquired for $42 million with a 6.7 per cent yield, the refurbished 6,000sqm building is fully leased.

It comes with a weighted average lease expiry (WALE) of approximately 12 years. 
 
Hamish Wehl, Head of Retail Funds Management at Cromwell, said the Boundary Street investment was set to be a compelling addition to the DPF portfolio.
 
“The education sector is growing substantially and is Australia’s third largest export behind iron ore and coal. 

"IES, as a global leader in education services, is well positioned to benefit from the influx of international students coming to Australia,” Mr Wehl said.

“With the Brisbane City Council’s clear agenda to continually attract more students to the city, combined with their vision to rejuvenate the Spring Hill precinct, Boundary Street will add long-term value and diversification to the Fund.”