This article is from the Australian Property Journal archive
AUSTRALIAN Unity and Cromwell are terminating their proposed merger that sought to establish a $1.1 billion unlisted investment property fund, due to increasing uncertainty in the market.
Initially announced in early July, the merger of the Australian Unity Diversified Property Fund (AUDPF) and Cromwell Funds Management Limited (CFML) would have included a portfolio of 15 high-quality investment properties across a arrange of asset classes in Australia.
Joe Fernandes, chief investment officer and executive general manager, funds management at Australian Unity cited “material changes in the prevailing environment for commercial property” increasing uncertainty around the merger.
“We continue to evaluate the next steps for AUDPF to deliver value for all unitholders,” said Fernandes.
AUDPF’s usual quarterly capped withdrawal facility (CWF) will resume from November 2023 and be processed under the existing terms and conditions of the CWF, in light of these changes.
AUDPF currently holds a portfolio of seven properties across convenience retail, office and industrial property sectors.
This includes the $144 million Caltex Twin Service Centres on the M1 in Wyong, NSW and the $125 million Blackburn Square Shopping Centre in Blackburn, Victoria which is currently being developed and expanded.
In August, Australian Unity opened its Albert Park adaptive reuse project, The Alba, which saw the transformation of from its former 1970s-built office headquarters into an integrated assisted living and aged care residence.
While back in July, Cromwell Property Group delivered a Sydney CBD-first, with an electrification upgrade at its multi-million-dollar 24-storey McKell building.
