Sydney, Jan 25, 2008 (ABN Newswire) - Cromwell Corporation Limited (ASX: CMW) - Following recent turbulence in financial markets, primarily due to concerns surrounding US subprime issues and recession fears, Cromwell wishes to provide securityholders with an update on the Group, including recent positive property revaluations.

Audio webcast Link:

Listen to the Audio stream and view the announcement for Cromwell Corporation Limited (ASX: CMW) below.

Cromwell wishes to reiterate that:

- Current annualised distributions remain unchanged at 10 cents per security;

- Cromwell has chosen to focus on quality, non-residential Australian property assets with long lease profiles to predominately blue chip tenants. Cromwell has no exposure to international property which, in the current market, is advantageous;

- Cromwell has rebalanced its property portfolio by way of a number of asset sales over the past few months at significant premiums to valuations, and as a result currently has a low level of gearing, with net debt to total assets sitting at 35%; and

- Cromwell actively manages its interest rate risk associated with loans to minimise exposure to adverse movements in debt markets. A total of 83% of net debt is currently fixed for a weighted average term of 4.7 years. All debt funding is in Australian dollars;

Positive Revaluations

As at 31 December 2007 the Group revalued approximately 40% of its portfolio with a rise of $31.2 million or 8.6% of the assets revalued. This contributed to an increase in unaudited Net Tangible Assets per security (NTA) to $1.02, a 6% increase over the 30 June 2007 NTA.

On-market buy-back

The Group announced on 24 January 2007 that it is to undertake an on-market buy-back of up to 69 million Cromwell Group stapled securities. This initiative is being launched as the Group believes the buy-back of securities is the optimal way of using Cromwell’s capital resources at a time when the Board is of the belief that the market price does not accurately reflect the inherent value of the Group.

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