Cromwell Property Group shares fall after $201m office build cost revealed
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More news: Cromwell Property Group’s share price has fallen after the company revealed that its development of a Canberra office building, which will be leased by an undisclosed Commonwealth government department, is expected to cost $201 million.
Shares in Cromwell had fallen by 4% to $0.36 at 2:36pm AEST. The broader real estate sector increased 0.6%.
Cromwell Property Group’s government office build to cost $201m
The news: The cost of Cromwell Property Group’s development project for an undisclosed Commonwealth government department is expected to be $201 million.
The numbers: The projected yield on cost is expected to be more than 6.3%.
The context: The expected total development cost of $201 million is inclusive of land, construction costs, fees, finance costs and a tenant incentive that will be taken in instalments during project delivery.
On Friday, Cromwell told the exchange it had entered an agreement for lease to develop an office building for an unspecified Commonwealth government department.
The lease will run over 15 years and includes a five year extension option.
The source: ASX
