Australian Unity Office Fund Signs $40M Brisbane Sale, Moves Toward Wind-Up
Australian Unity Office Fund enters conditional $40 million Brisbane sale, moves toward wind-up
Australian Unity Office Fund (ASX: AOF) has entered into a conditional contract to sell 150 Charlotte Street, Brisbane to a fund managed by the Dexus Group for $40.0 million. The Australian Unity Charlotte Street sale advances the fund’s previously approved wind-up strategy, with unitholders expected to receive aggregate returns of $0.37 to $0.38 per unit if the proposal proceeds to completion.
The contract remains subject to two key conditions: approval from the Foreign Investment Review Board (FIRB) for the purchaser, and refreshed approval from AOF unitholders. Australian Unity Investment Real Estate Limited (AUIREL), as responsible entity, announced on 9 April 2026 that it will seek fresh unitholder approval despite unitholders having approved the fund’s wind-up in December 2024.
The $40.0 million sale price reflects the gross figure and excludes settlement adjustments and transaction costs. AUIREL has clarified that the final amount returned to unitholders may vary higher or lower than the estimated range, given the contract remains conditional and subject to settlement risk, whilst final wind-up costs remain uncertain.
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What is a Listed Property Trust wind-up?
A listed property trust wind-up is the process by which an ASX-listed fund sells its assets, distributes the proceeds to unitholders, and removes itself from stock exchange trading. Rather than continuing to hold property investments and receive ongoing distributions, unitholders receive a cash return representing their proportional share of the fund’s remaining value.
The typical sequence involves the responsible entity selling the fund’s property holdings, settling outstanding liabilities, calculating final distributions after deducting wind-up costs, and ultimately delisting from the ASX. Once delisted, units can no longer be bought or sold on the exchange, and the fund ceases to operate as an investment vehicle.
For AOF unitholders, this means their ongoing exposure to office property returns will be replaced by a capital distribution. The process crystallises value from the fund’s final major asset rather than leaving it to generate rental income over time.
Timeline and next steps for AOF unitholders
AUIREL has outlined a clear sequence of events leading to the potential settlement and subsequent wind-up. The responsible entity expects to issue formal meeting documentation in April 2026, providing unitholders with full details of the proposal and the directors’ recommendations.
The expected timeline proceeds as follows:
- Notice of Meeting and Explanatory Memorandum to be issued in April 2026
- Extraordinary general meeting to be held in May 2026
- Subject to unitholder and FIRB approval, Charlotte Street settlement expected May 2026
- Subsequent wind-up and delisting process to follow
The two approval conditions must both be satisfied before the sale can proceed. The purchaser must secure FIRB clearance for the acquisition, whilst AOF unitholders must vote in favour of refreshing the previously granted approvals at the extraordinary general meeting.
AUIREL confirmed it consulted with the ASX before determining that refreshing unitholder approvals was appropriate before proceeding further with the Charlotte Street sale or the delisting and winding up of the fund.
Expected returns and key considerations
AUIREL has provided unitholders with an expected return range of $0.37 to $0.38 per AOF unit, assuming settlement of Charlotte Street for $40.0 million. This figure represents aggregate proceeds and incorporates the gross sale price less anticipated settlement adjustments, transaction costs, and estimated wind-up expenses.
The announcement explicitly notes that the final amount returned may be higher or lower than this estimate. Settlement risk remains until both approval conditions are satisfied, and the ultimate wind-up costs cannot be determined with certainty until the process is complete.
Unitholders will only be eligible to receive the aggregate return if they are on the AOF register on each of the record dates for the return of proceeds and continue to hold their units through the winding up.
| Item | Detail | Status | Timing |
|---|---|---|---|
| Sale price | $40.0 million | Conditional contract signed | Settlement May 2026 |
| FIRB approval | Required from purchaser | Pending | Before settlement |
| Unitholder approval | Refreshed vote required | EGM to be called | May 2026 |
| Expected return | $0.37 – $0.38 per unit | Estimate only | Post-settlement |
Why approvals are being refreshed
AOF unitholders originally approved the sale of the fund’s main undertaking and delisting from the ASX in December 2024. Following consultation with the ASX, AUIREL determined that it was appropriate to refresh these approvals before proceeding further with the Charlotte Street sale or the fund’s delisting and wind-up.
The decision to seek refreshed approvals represents a procedural governance step rather than a setback to the transaction. It provides current unitholders with an opportunity to vote on the proposal with full knowledge of the conditional contract terms and expected return range.
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What this means for AOF investors
The Charlotte Street sale represents the culmination of AOF’s wind-up strategy, converting the fund’s final major property asset into cash for distribution to unitholders. If both approval conditions are satisfied and the transaction settles in May 2026, unitholders can expect to receive their proportional share of proceeds shortly thereafter, followed by the fund’s delisting from the ASX.
Trading in AOF units will cease upon delisting, ending the ability to buy or sell units on the exchange. Unitholders approaching this final stage should ensure their registry details are current and monitor for the Notice of Meeting and Explanatory Memorandum expected in April 2026.
The directors’ position on the proposal is clear:
“The Directors of AUIREL intend to recommend that AOF unitholders vote in favour of the Proposal, in the absence of a superior proposal.”
Unitholders seeking further information or wishing to update registry details can contact Simon Beake, Portfolio Manager – AOF, on +61 2 9256 8707. Registry enquiries can be directed to 1300 737 760 or +61 2 9290 9600 (outside Australia).
The forthcoming Explanatory Memorandum will provide comprehensive details on the proposal, including the directors’ formal recommendations, the rationale for refreshing approvals, and the expected timeline for returning proceeds.
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