POWERED BY MOMENTUM MEDIA
AUI proposes property funds merger
Australian Unity Investments (AUI) plans to merge its Second Industrial Trust (SIT) with its Office Property Fund, subject to investor approval.
Investors in SIT will be eligible to vote on the proposal via proxy or by attending a general meeting of investors on 24 May in Melbourne.
According to AUI, the purpose of the merger is to create a $360 million property fund currently holding commercial properties in Sydney, Melbourne, Adelaide, Brisbane, Canberra and Perth.
With SIT's fixed term trust due to terminate in 2014, the trust will own a single property in New South Wales currently valued at just over $29 million at the time of the merger approval.
AUI head of property, mortgage and capital markets Mark Pratt said the investment manager had spent several months researching the options available to SIT, with the merger proposal found to be the best option for investors.
He said AUI would allow investors to maintain their investment in the Australian property market beyond SIT's schedule termination.
"If the proposal is approved, investors will be offered an initial $5.7 million capped withdrawal offer equating to approximately 25 per cent of SIT's forecast net asset value at the withdrawal offer date," AUI stated.
AUI has combined investment vehicles in the past. Its Retail Property Fund formed in 2009 with the merger of six existing property trusts.
"Such an approach can give investors exposure to a number of quality, large-scale direct properties that their previous investments couldn't provide," Pratt said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Taking a purely passive investment approach is leaving many investors at risk of heightened valuation risks, Allan Gray and Orbis Investments have cautioned.
Annual trimmed mean inflation saw a slight spike in April, according to data from the ABS.
Active managers say that today’s market volatility and dislocation are creating a fertile ground for selective stock picking, reinforcing their case against so-called “closet indexers”.
Platform leaders admit they’re operating under constant pressure and a persistent “state of paranoia” to keep pace with technology that is reshaping how clients access and interact with their wealth.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
