Australian Unity Office Fund Secures FIRB Approval on $40M Charlotte St Sale
Charlotte Street sale advances after foreign investment approval secured
Australian Unity Office Fund (ASX: AOF) has confirmed that the Foreign Investment Review Board has approved the $40.0 million sale of 150 Charlotte Street, Brisbane. The buyer, a fund managed by Dexus Group, has satisfied one of two conditions precedent required to complete the transaction, with unitholder approval now the final hurdle.
The FIRB clearance, confirmed on 15 April 2026, reduces transaction risk and keeps the sale on schedule. Regulatory approval was required because the purchaser is a Dexus-managed fund, bringing the deal under foreign investment scrutiny.
For AOF unitholders, the progress signals that the fund’s orderly wind-up pathway remains intact. The transaction forms part of a broader proposal to sell the asset, return proceeds to investors, delist from the ASX, and ultimately wind up the fund.
What is FIRB approval and why does it matter?
The Foreign Investment Review Board reviews acquisitions by foreign entities or foreign-linked funds to ensure they align with Australia’s national interest. FIRB approval is standard for property transactions involving foreign capital or entities with offshore ownership structures.
Clearing this regulatory checkpoint removes a potential delay or rejection risk. It means the purchaser can proceed to settlement once the remaining condition—unitholder approval—is satisfied. For AOF unitholders, the approval provides increased certainty that capital will be returned as outlined in the fund’s wind-up proposal.
The Dexus Group’s involvement also signals institutional confidence in the Charlotte Street asset, despite AOF’s decision to exit the property.
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Unitholder vote scheduled for 8 May to finalise wind-up proposal
AOF has scheduled an Extraordinary General Meeting for Friday, 8 May 2026 at 10:00am AEST at 271 Spring Street, Melbourne. Unitholders will vote on the disposal of the fund’s main undertaking, which includes the Charlotte Street sale, return of aggregate proceeds, ASX delisting, and the fund’s ultimate wind-up.
The Explanatory Memorandum was lodged with the ASX on 13 April 2026, providing unitholders with full details of the proposal and the Charlotte Street transaction. The EGM represents the final approval step before the sale can settle.
Board Recommendation
“The Directors of AUIREL unanimously recommend that AOF Unitholders vote in favour of the Proposal, in the absence of a superior proposal.”
Unitholder approval is the remaining condition precedent for the sale to complete. The unanimous board recommendation signals alignment between management and investors on the wind-up pathway, suggesting the directors view the $40.0 million sale price and broader exit strategy as being in unitholders’ best interests.
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Timeline and next steps for AOF unitholders
The sequence of events from contract announcement to potential completion follows a clear progression:
- 9 April 2026 – Conditional sale contract announced for 150 Charlotte Street at $40.0 million (excluding disposal costs and settlement adjustments)
- 13 April 2026 – Explanatory Memorandum and Notice of Extraordinary General Meeting lodged with the ASX
- 15 April 2026 – FIRB approval confirmed by the purchaser, satisfying the first condition precedent
- 8 May 2026 – Extraordinary General Meeting for unitholder vote on the disposal and wind-up proposal
- Post-approval – Settlement of the sale, distribution of proceeds to unitholders, ASX delisting, and wind-up of AOF
The compact timeline between FIRB approval and the EGM date suggests efficient execution by the responsible entity. Unitholders now have visibility on the capital return pathway, with less than a month between regulatory clearance and the vote.
What happens after the vote?
If unitholders approve the resolution at the EGM, the sale will proceed to settlement. Aggregate proceeds from the Charlotte Street disposal will be returned to unitholders, though the exact timing of the distribution has not been specified in the announcement.
Following the return of capital, AOF will delist from the ASX and commence the formal wind-up process. This represents a defined exit event for investors rather than a distressed liquidation. The $40.0 million transaction value, combined with institutional buyer involvement, suggests the sale is being executed in an orderly manner.
Unitholders should note that the proposal is contingent on their approval at the May meeting. The board’s unanimous recommendation provides clarity on management’s view, but the final decision rests with investors. The sale contract remains conditional until the unitholder resolution passes.
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