Australian Unity Office Fund (ASX:AOF) to merge with unlisted fund

• Australian Unity Office Fund (AOF) enters into a merger implementation deed with unlisted Australian Unity Diversified Property Fund (DPF)
• The merged fund, Australian Unity Property Fund (AUPF), will be made up of 54 per cent AOF shareholders and 46 per cent DPF shareholders
• AOF Fund Manager Nikki Panagopoulos says the company is pleased to have reached this milestone in the proposed merger
• Shares in AOF are trading flat at $2.35 at 4:04 pm AEDT

Australian Unity Office Fund (AOF) has entered into a merger implementation deed with unlisted Australian Unity Diversified Property Fund (DPF) to create the Australian Unity Property Fund (AUPF).

According to the terms of the merger, AOF will acquire all of DPF’s units and issue new AOF units to DPF unitholders at a ratio of 0.455 AOF unit for every 1 DPF unit owned.

Following the merger, AOF unitholders will control about 54 per cent of AUPF, while DPF unitholders will possess approximately 46 per cent.

The unlisted DPF fund focuses on diversified Australian assets across retail, office and industrial sectors.

The merger will be carried out through a DPF trust scheme, subject to court permission and the receipt of relevant approvals at an AOF unitholder meeting that is required to effectuate the DPF trust scheme.

AOF Fund Manager Nikki Panagopoulos said the company was pleased to have reached this milestone in the proposed merger.

“Since we first announced the intention to investigate the merger in July 2021, we have worked with DPF to develop a transaction structure that provides an opportunity for unitholders in both funds to benefit from the combined portfolio,” she said.

“We believe exposure to a $1.2 billion diversified portfolio with approximately 97% occupancy and a five year weighted average lease expiry profile will provide unit holders with a superior investment proposition and sustainability of income.

“The combined portfolio also offers value-add opportunities across multiple asset classes, and the ability to continue active asset management and enhance portfolio construction to maximise overall returns.”

The AOF meeting and explanatory memorandum are expected to be sent to unitholders of both funds by November 15, with the meeting requiring approval by AOF shareholders.

The DPF trust scheme will also require the approval of DPF shareholders by way of a special resolution.

Shares in AOF were trading flat at $2.35 at 4:04 pm AEDT.