Australian Unity Office Fund has declined a revised $54.5 million offer for its Brisbane property at 150 Charlotte Street after the purchaser defaulted on the original contract. The fund now awaits the purchaser's next move before the September 8 deadline.
- Revised $54.5 million offer for 150 Charlotte Street rejected
- Purchaser defaulted on original sale contract
- Board unanimously decided rejection was in unitholders’ best interests
- Purchaser has until September 8 to remedy default
- Future updates pending based on purchaser’s actions
Background on the Sale
Australian Unity Investment Real Estate Limited (AUIREL), the responsible entity for the Australian Unity Office Fund (AOF), has provided a significant update regarding the sale of its Brisbane office property at 150 Charlotte Street. This follows a previous announcement in late August when the purchaser failed to complete the original contract of sale, triggering a revised offer.
Revised Offer and Board Decision
The purchaser proposed a revised offer of $54.5 million, which included the deposit already held by AOF, with settlement scheduled for March 2026. After careful consideration and consultation with unitholders, the AUIREL Board unanimously rejected this offer, concluding it was not in the best interests of the fund’s investors.
Implications of the Rejection
This rejection underscores the Board’s commitment to protecting unitholder value amid uncertain transaction terms. The purchaser remains under contract obligations and has until September 8, 2025, to remedy the default and complete the sale under the original terms. The outcome of this deadline will be pivotal for the fund’s asset management strategy.
Looking Ahead
AUIREL has pledged to keep the market informed in line with continuous disclosure requirements. Investors will be watching closely to see whether the purchaser can meet the contractual obligations or if alternative sale avenues will be pursued. The situation highlights the challenges of managing large office assets in a fluctuating market environment.
Bottom Line?
The next week will be critical as the purchaser’s response could reshape the fund’s asset portfolio and investor returns.
Questions in the middle?
- Will the purchaser meet the September 8 deadline to complete the sale?
- What alternative strategies might AUIREL pursue if the sale falls through?
- How will this decision impact the fund’s overall portfolio and distribution outlook?