AUI seeks property trust merger

australian-unity/funds-management/mergers-and-acquisitions/property/australian-unity-investments/real-estate-investment/

18 November 2013
| By Staff |
image
image
expand image

Australian Unity Investments (AUI) has proposed to merge its Australian Unity Fifth Commercial Trust (FCT) with its unlisted Australian Unity Office Property Fund (OPF), subject to investor approval in December. 

FCT is a fixed terms trust due to terminate in 2015. AUI has stated that it is seeking via the proposal to maximise the value of the trust’s remaining properties - one of which is already 50 per cent owned by OPF. 

OPF owns eight office buildings in some of Australia’s major centres, with a forecast total asset value of approximately $366 million (30 June 2014). 

AUI real estate investment general manager Mark Pratt said the merger would provide a cost- and tax-effective option to continue their investment in commercial property by removing the reliance on the risks of a sale process. 

“OPF is forecast to provide higher distribution returns than those forecast for FCT, has greater diversification than FCT, and intends to continue providing regular capped withdrawal opportunities to investors,” he said. 

“If investors vote in favour of the proposal, their investment will transfer to the OPF, with the dollar value of their investment remaining unchanged at the implementation date.” 

FCT investors will be eligible to vote on the proposal via proxy or by attending a general meeting on 11 December 2013, in Melbourne. 

Earlier this year, AUI successfully merged its Australian Unity Second Industrial Trust with OPF, and, in 2009, converted five of its retail property syndicates and trusts into the Australian Unity Retail Property Fund.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 6 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 5 days ago

TOP PERFORMING FUNDS