Australian Unity Office fund announced the funds half year 2023 financial results which continues to reflect the out workings of their stated strategy to return capital to investors.
During the period, the Fund has sold 30 Pirie Street, Adelaide and numbers 2 and 5 Eden Park Drive Macquarie Park and advanced the repositioning of its remaining assets.
Nikki Panagopoulos, AOF Fund Manager said “The successful asset sales have reinforced AOF’s strategic priorities. Our strong balance sheet with an expected cash balance of over $40 million following settlement of asset sales may provide the opportunity to return capital to unitholders through a special distribution. Any announcement regarding a potential special distribution would be made prior to 30 June 2023.”
“We remain focused on maximising returns for unitholders and will continue to be proactive in terms of portfolio construction, asset sales and active asset management.”
One of AOF’s largest unit holders, Hume Partners opposed the take over of the fund by Aliro at price of $2.45/unit, forcing Aliro to end its proposal and effectively forcing AOF to adopt a sale strategy to break the deadlock in investment strategy for the Fund. AOF have previously entertained offers from Starwood, Abacus and Charter Hall (some as high as $3.04/unit back in 2019), each of which were also opposed by AOF’s unitholders.
AOF’s remaining portfolio value as at 31 December 2022 was approximately $316 million reflecting a weighted average capitalisation rate of 5.7% and a value per square metre of $6,413. This places the Net Tangible Assets of the Fund at $2.22/unit which together with the recent distributions places the outcome from asset sales well below the previous offers.