AOF asset settlement delayed, on track for June delisting

The Australian Unity Office Fund (AOF) has delayed the settlement of its Brisbane asset to August but insists that it is on track to shutter its doors before June.

The settlement of 150 Charlotte Street, Brisbane was originally set to settle in late April, but this has been pushed back to late August. The sale price was set at $61.5 million, but Australian Unity Real Estate Limited (AUIREL) said it has negotiated for a $2 million increase to $63.5 million.

According to CoreLogic, real estate investment manager Sumner Capital and boutique property development and advisory firm Innovate Re are the buyers of 150 Charlotte Street, Brisbane, which is home to the Australian Passport Office, Department of Foreign Affairs & Trade and MHL Legal & Notary. The property last traded at $105.75 million in October 2017.

AOF recently settled the sale of 2-10 Valentine Avenue. The sale was first announced last July for $80.5 million.

As for the third property, AOF announced in February that the sale of 468 St Kilda Road, Melbourne settled for $41.5 million.

On 17 December 2024, nearly all (99%) of unitholders approved the disposal of AOF's main undertaking and delisting. AOF had net tangible assets of $187 million at the end of 2024 of $1.14 per unit.

AOF made a $26.8 million lost in the first half of the 2025 financial year, primarily driven by a net fair value loss of $23.1 million.

AURIEL said AOF is expected to be wound up and delisted before June 30.

Nikki Panagopoulos, who was appointed as portfolio manager of AOF in July 2021, jumped to Cbus last October as a senior investment director of property.

AOF has progressively offloaded assets in recent years, including 2 Eden Park Drive, North Ryde and 5 Eden Park Drive and 64 Northbourne Avenue, Canberra.

Last May, Wilson Asset Management bought 9.8 million shares in AOF, paying $1.20 per share for its ASX-listed LIC WAM Strategic Value.

AOF traded at 88 cents per share at the time of writing.