This article is from the Australian Property Journal archive
AUSTRALIAN Unity Limited (AUL) will sell its interest in Australian Unity Property Limited (AUPL), to specialist Australian investment manager ASA Real Estate Partners Pty Ltd (ASA), including the transfer of management rights for the $520 million Diversified Property Fund (DPF).
The agreement comes a few months after Australian Unity and Cromwell called off their proposed merger of the DPF and a Cromwell fund that would have established a $1.1 billion unlisted investment property fund, citing “material changes in the prevailing environment for commercial property” since the deal has been initially announced in July.
DPF’s portfolio includes the $154 million Wyong Twin Service Centres in NSW, Dog Swamp Shopping Centre in Western Australia, and the Woolworths-anchored North Blackburn Shopping Centre in Melbourne.
Jenny Saliba, executive general manager finance and commercial, wealth and capital markets, Australian Unity, said ASA Real Estate Partners was selected because of the team’s considerable expertise in managing retail, business park and industrial assets.
“DPF unitholders will benefit from the management of a highly specialised and focused team with deep experience and a proven track record in retail funds management and commercial real estate investment,” she said.
Saliba said the sale of AUPL and transfer of management rights for DPF was in line with Australian Unity’s long-term strategy.
Tim Slattery, managing partner of ASA Real Estate Partners, said ASA has a compelling unitholder value proposition for its future management of DPF, including growing value and liquidity for investors.
“ASA offers investors an experienced team with specialist expertise and a track record of delivering strong risk-adjusted returns in Australian real estate funds management,” he said.
“We believe the DPF portfolio provides a strong foundation to navigate the current environment and generate value for unitholders.”
Under the terms of the transfer for DPF, ASA has committed to provide a secondary liquidity opportunity for DPF unitholders, at market value, of up to $10 million, in addition to existing DPF liquidity arrangements that are not affected by the fund transition. To support the transition of DPF’s management, ASA and AUL have agreed to work on transitional arrangements for the fund for the period to 30th June, when the agreement comes into effect.
