AUI proposes property funds merge
Australian Unity Investments (AUI) has proposed a merger of its two property funds before one of them reaches termination in June 2014.
AUI is seeking approval from investors in its Second Industrial Trust (SIT) to merge the trust with its much larger Office Property Fund.
SIT, which was acquired by AusUnity as part of its purchase of Investa Funds Management in 2011 — is a fixed-term trust due to be terminated in 2014. It will own a single property in NSW at the time of the merger, if approved.
Investors in SIT will be able to vote on the proposal later this month in Melbourne which, if approved, would result in the creation of a $360 million property fund.
"Australian Unity Funds Management, as responsible entity, believes the proposal is in the best interests of investors in SIT," said Mark Pratt, AUI's head of property, mortgage and capital markets.
"A number of investors in SIT have indicated to us they would like to maintain their investment in the Australian property market beyond SIT's scheduled termination in June 2014."
If investors vote in favour of the proposal, Pratt said, their investment would transfer to the Office Property Fund, with the dollar value of their investment remaining unchanged at the implementation date.
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