This article is from the Australian Property Journal archive
ASX-listed Australian Unity Office Fund (AOF) is actively courting real estate agents as it again flagged a potential selldown of some assets across its $586.5 million portfolio.
Speculation is mounting about the future of the fund after investors knocked back the proposed merger of AOF with the unlisted Australian Unity Diversified Property Fund, which would have created a portfolio of $1.1 billion.
“AOF will continue to focus on initiatives to maximise value for unitholders, including leasing activity, progressing our value-add development opportunities and investigating further asset sales,” fund manager Nikki Panagopoulos said.
“In this regard AOF is in the process of seeking proposals from real estate sales agents. We will keep unitholders updated as these initiatives are progressed, including if real estate sales agents are appointed.”
Shareholders also thwarted a takeover bid from Charter Hall and Abacus Property Group in late 2019.
Preliminary revaluations have been undertaken for all seven of its assets for the end of December, resulting in an overall net increase of about $10 million above prior valuations and $4 billion above book value.
Strong valuation gains were seen for 5 Eden Park Drive, Macquarie Park and 64 Northbourne Avenue in Canberra after the assets saw the bulk of the 4,500 sqm of leases secured across the portfolio in the first half of FY22.
Heads of agreement were signed over a further 2,100 sqm.
The lease expiry profile of 150 Charlotte Street saw $4 million taken off its value, taking it to $93 million.
AOF offloaded 32 Phillip Street in Parramatta in December at a 5% premium to the June 30 valuation.
Panagopoulos said leasing conditions multi-tenanted assets remain active, in particular for sub-500 sqm occupiers.
