Diversified Property Fund advances repositioning, sells Parramatta office

03 May 2022

Tags: Media

Australian Unity’s $615 million Diversified Property Fund has sold a further asset at a premium to book value in line with the portfolio’s re-positioning strategy.

Australian Unity’s $615 million Diversified Property Fund has sold a further asset at a premium to book value in line with the portfolio’s re-positioning strategy.

On 26 April, the Fund exchanged binding contracts of sale for 20 Smith St, Parramatta, NSW, an eight-storey office building of 7,352 metres2 for $87.251 million, a premium of circa. 4.5% against its December 2021 book value.

This follows the sale of an industrial property at 19 Corporate Avenue, Rowville, Victoria in December 2021 for $27.85 million, at a 26% premium against the book value prior to the sale.

Jonathon Senior, Fund Manager for the Australian Unity Diversified Property Fund said both sales demonstrate effective management of the portfolio and are in line with the Fund’s stated re-positioning strategy to recycle capital into significant development projects at neighbourhood shopping centres in Blackburn, Victoria and Busselton, Western Australia.

“The sale of 20 Smith St Parramatta increases the Fund’s weighted average lease expiry to 8.4 years from 7.5 years with sale proceeds ultimately being used to fund the two key development projects through to completion, he said.

Investors will receive a special distribution following the disposal of 19 Corporate Avenue, Rowville and of 20 Smith St, Parramatta on 30 June 2022 which will be in addition to the Fund’s regular income distribution payment.

-ENDS-

Further information:
Penny Bold
Corporate Affairs Lead – 0400 567 937

Blackburn Square Shopping Centre development update
Stage one of the development is complete with Coles opening for trade on 13 April 2022. This follows the fresh food hall launch in December 2021 and the earlier completion of the external and services precinct in early 2021.

Stage two construction commenced in April 2022 with practical completion scheduled for April 2023. Stage two comprises an Aldi Supermarket, 102-place childcare centre, medical centre, gym and approximately thirty specialty tenancies and is ~ 63% pre-committed with a range of national and independent retailers committed to the development.

Busselton Central Shopping Centre update
Construction for stage three of the development commenced in November 2021. This stage comprises an additional 6,180 sqm of gross lettable area to include ~4,000 sqm of quality food and beverage on the ground floor to include a local tavern, as well as more than ten dining and retail stores including Benesse, Dome, Funkee Monkee Bar & Eatery, Asian Kitchen and Cotton On Mega. A new five-screen Reading Cinema will be located on level one. The centre will create a unique dining and entertainment experience for the Southwest region of WA.

Stage 3 leasing well progressed with 70% of leasing income pre-committed. The project is scheduled to be complete and trading in the second quarter of 2023.

About the Australian Unity Diversified Property Fund Australian Unity’s Diversified Property Fund
was established in 2006 and holds eight properties across New South Wales, Victoria, South Australia and Western Australia. A strong performer, it has delivered investors a total return of 13.78% over one year, 13.37% pa over three years, 13.47% over five years and 9.24% pa since its inception on 22 August 2006.1

About Australian Unity
Established in 1840, Australian Unity is a member-owned wellbeing company with 400,000 members and more than 700,000 customers. Our range of health, wealth and care products and services provides member, customer and community value that is supportive of personal and community wellbeing. www.australianunity.com.au

1 Past performance is not a reliable indicator of future performance, returns assume the reinvestment of distributions and are quoted after fees.

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