Australian Unity Office Fund Advances $40M Brisbane Asset Sale with Unitholder Vote Pending
Australian Unity Office Fund has secured Foreign Investment Review Board approval for the $40 million sale of its Brisbane office tower, setting the stage for a pivotal unitholder meeting to approve the sale, delisting, and wind-up of the fund.
- FIRB approval obtained for sale of 150 Charlotte Street
- Extraordinary General Meeting scheduled for 8 May 2026
- Proposal includes sale, fund delisting, and wind-up
- Directors unanimously recommend voting in favour absent superior offers
- Sale to Dexus-managed fund valued at $40 million
FIRB Approval Clears Major Regulatory Barrier
Australian Unity Office Fund (ASX:AOF) has taken a significant step towards exiting its core real estate investment business with the Foreign Investment Review Board (FIRB) granting approval for the conditional sale of its Brisbane office tower at 150 Charlotte Street. The $40 million deal, inked with a fund managed by the Dexus Group, now moves closer to completion after clearing this regulatory hurdle.
Unitholder Approval to Decide Fund’s Fate
The sale contract remains conditional on unitholder approval, with Australian Unity Investment Real Estate Limited, the responsible entity, calling an Extraordinary General Meeting (EGM) on 8 May 2026 in Melbourne. The meeting will seek refreshed consent from unitholders not only for the sale but also for the broader proposal to wind up the fund and delist it from the ASX. The directors have unanimously recommended voting in favour of the proposal, provided no superior offer emerges.
This development follows the fund’s earlier attempts to dispose of the same asset, including a terminated sale contract in late 2025 and a rejected $54.5 million offer, highlighting the protracted and complex nature of this divestment. The current refreshed unitholder vote echoes the need to secure clear investor backing before proceeding with the fund’s closure, as outlined in the previous conditional sale announcement and associated unitholder proposal.
Implications for Investors and Market Positioning
For investors, the sale and subsequent wind-up represent a return of capital opportunity, with earlier disclosures suggesting unitholder returns between 37 and 38 cents per unit upon settlement. The fund’s exit from the office property sector also reflects a strategic shift amid evolving market dynamics. The final outcome hinges on the EGM vote and whether any competing proposals surface, making the coming weeks critical for unitholders and market watchers alike.
Bottom Line?
The fund’s future now rests on unitholder approval, with the sale clearing a key regulatory step but the wind-up still contingent on investor backing and potential rival bids.
Questions in the middle?
- Will unitholders endorse the proposal to wind up and delist the fund at the EGM?
- Could a superior proposal emerge before the 8 May meeting to alter the fund’s trajectory?
- How will the return of capital impact investor sentiment towards Australian Unity’s real estate strategy?
