Australian Unity Office Fund has called an extraordinary meeting to secure approval for selling its final property, delisting from the ASX, and winding up the fund, with directors unanimously recommending the proposal.
- Sale of 150 Charlotte Street for $40 million
- Unitholder vote on delisting and winding up
- Expected return of $0.37 to $0.38 per unit
- FIRB approval secured for asset sale
- Directors recommend proposal as best option
Final Asset Sale to Dexus-Managed Fund
Australian Unity Office Fund (ASX:AOF) is seeking unitholder approval to sell its last remaining investment property at 150 Charlotte Street, Brisbane, for $40 million. The sale contract, conditional on Foreign Investment Review Board (FIRB) approval and unitholder consent, has now cleared the regulatory hurdle, with FIRB approval confirmed in mid-April. The purchaser is a fund managed by the Dexus Group, a major player in Australian commercial real estate.
This sale marks a critical step in AOF’s planned exit strategy, following a turbulent period that saw a previous sale contract terminated due to purchaser default and a rejected higher offer of $54.5 million earlier last year. The current sale price reflects a reset from those earlier negotiations amid challenging market conditions for office assets.
Proposal to Delist and Wind Up the Fund
The extraordinary general meeting held on 8 May 2026 in Melbourne was convened to vote on a comprehensive proposal that includes the asset sale, delisting from the ASX, returning proceeds to unitholders, and ultimately winding up the fund. The directors of Australian Unity Investment Real Estate Limited (AUIREL), the responsible entity, unanimously recommend the proposal, believing it serves unitholders’ best interests given the current circumstances.
Under the plan, after the sale settles, AOF will be removed from the official ASX list. Following delisting, proceeds from the sale alongside cash and other net assets will be returned to unitholders primarily through compulsory unit redemptions or special distributions. The fund will then be wound up, with any residual cash distributed and deregistration completed.
Expected Returns and Risks for Unitholders
Unitholders can anticipate aggregate returns of approximately $0.37 to $0.38 per unit, assuming the sale settles as planned. However, the directors caution that final returns may fluctuate due to settlement risks and uncertainties around winding-up costs. Investors must also remain on the register through the winding-up process to qualify for distributions.
This proposal follows a challenging financial period for AOF, which reported a significant loss in FY25 driven by property value declines and delayed asset sales. The sale of Charlotte Street has been a focal point of uncertainty but now appears poised to complete, enabling the fund’s exit strategy to proceed.
With the extraordinary meeting concluding and the proposal endorsed by the board, the next steps hinge on unitholder voting outcomes and the successful settlement of the sale contract. The timeline for these events remains as previously outlined, with the fund’s delisting and winding up anticipated shortly after the asset disposal.
For those tracking AOF’s trajectory, this marks the culmination of a drawn-out process to exit the office property sector amid shifting market dynamics. The fund’s fate underscores the broader challenges facing listed office real estate vehicles in Australia’s evolving commercial landscape.
Investors interested in the unfolding developments should note the importance of the upcoming settlement and distribution milestones as key value drivers in the near term.
FIRB approval secured was a pivotal moment that cleared the way for the sale, while the conditional contract for $40 million reflects the latest pricing and terms shaping unitholder returns.
Bottom Line?
AOF’s proposal to sell its last asset and wind up the fund offers a clear path to capital return, but settlement risks and final costs inject uncertainty into the ultimate payout.
Questions in the middle?
- Will unitholders approve the proposal as recommended by the board?
- How will any settlement delays or cost overruns affect final distributions?
- What does AOF’s exit signal for the outlook of listed office property funds?