AUI acquires Investa property funds business

Australian Unity Investments (AUI) has entered into an agreement with Investa Property Group to acquire the responsible entity for its retail funds business, the group announced, boosting AUI’s property fund funds under management (FUM) to almost $2 billion.

This includes the Investa Diversified Office Fund (IDOF), the Investa Fifth Commercial Trust (I5CT) and the Investa Second Industrial Trust (ISIT), which collectively hold more than $430 million FUM with 12 office and industrial buildings across Australia.

The transaction arose because Investa decided to focus on its listed wholesale core funds, the Investa Office Fund and Investa Commercial Office Fund, which are worth more than $4 billion, AUI stated.

AUI’s general manager — property, mortgages and capital markets — Mark Pratt, said key retail funds management staff from Investa will join the AUI property team.

AUI will look at ways to enhance liquidity for investors in the funds, which have performed well, he said.

“We believe it is a particularly opportune time to expand our office property activities, as our view is that core CBD office markets will continue to perform well due to sustained employment levels and lack of new developments, providing excellent opportunities for investors,” he said.

Scott MacDonald, chairman and chief executive officer of Investa, said AUI met all of Investa’s stringent evaluation criteria.

AUI was selected on the basis of its strong management experience and financial capacity, significant track record in managing retail property funds, resources to deliver on the fund strategies, and approach to corporate governance, he said.

“We believe AUI has strong capability and the experience to continue to deliver on fund objectives, and will manage the funds in the best interests of unitholders,” he said.