Investors in Australian Unity’s Diversified Property Fund and Retail Property Fund have voted overwhelmingly in favour of the proposal to merge the two funds to create a circa. $537 million diversified commercial property fund.
Currently, the Diversified Property Fund manages a portfolio of properties across retail, office and industrial sectors while the Retail Property Fund is sector specific and invests in retail‐based investments. With gross assets in excess of $0.5 billion, the merged fund is expected to deliver investors greater diversification, lower risk, greater absolute liquidity and increased capacity to raise capital to fund future developments.
Fund manager Nikki Panagopoulos said that the funds had performed well on their own, however the merged fund is expected to provide greater scale to deliver additional benefits to investors, over time.
“We explored a range of options to further strengthen the funds and, after careful consideration, determined that the merger of the funds would add value for investors over the medium to long term.
“The merger also helps progress the $160 million development pipeline which over time will complement the Fund’s value‐add strategy, and ensure that the consistent stable income stream remains a key focus.”she said.
The development pipeline includes the $20 million development of Stage three at Busselton Central Shopping Centre in Western Australia and the proposed $80 million expansion of an A‐grade office building in Carlton, Victoria.
“The cornerstone of our property management approach is to drive investor returns by focusing primarily on unique growth opportunities within the merged portfolio, with these developments aimed at improving long term investor returns and improving overall tenant quality.
Investors in DPF and RPF were invited to vote on the proposal during a series of separate meetings held on Wednesday 23 October 2019 in Melbourne. More than circa. 98% of votes cast were in favour of the resolutions.
Units in the Australian Unity Diversified Property Fund are issued by Australian Unity Property Limited ABN 58 079 538 499, AFS Licence No 234455 in its capacity as the responsible entity of the fund.
Securities in the Australian Unity Retail Property Fund are issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No 234454 in its capacity as the responsible entity of the fund.
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