Australian Unity offloads property fund

Australian Unity has agreed to sell Australian Unity Investments Limited (AUIL), the responsible entity of the Australian Unity Property Income Fund (PIF), to Newmark Capital (Newmark).

The transaction includes the transfer of management rights for PIF to Newmark, with completion scheduled to occur on or before 30 June 2025.

Australian Unity said the sale of AUIL and transfer of management rights to Newmark will not involve any changes to PIF's investment strategy, daily liquidity mechanism, distribution frequency or investor unit holdings because of the change in ownership of the responsible entity.

As part of the transaction, PIF fund manager Damian Diamantopoulos and assistant portfolio manager Andrew McLeod will join Newmark and continue to manage the fund on behalf of investors.

Australian Unity executive general manager - finance and commercial Jenny Saliba said PIF unitholders will benefit from access to a highly specialised team with deep experience and a proven track record in real estate investment.

Saliba said the transaction aligned with the group's strategy of focussing on areas where it can "operate at scale and maximise its impact".

"The transfer of the Australian Unity Property Income Fund is consistent with Australian Unity's strategy to focus its funds management business in areas where it can increase scale and impact, including its Platypus Asset Management business, Healthcare Property Trust and other social infrastructure investment products," Saliba said.

Newmark managing director Chris Langford said the transition marked a strategic alignment between Newmark's expertise in property funds management and the robust investment framework established by PIF, under Australian Unity's stewardship, over the last 25 plus years.

"The Australian Unity Property Income Fund is renowned for its focus on stable and regular property income derived from leases to leading tenants, in addition to diversified real estate exposures through both listed A-REITs and unlisted property funds," Langford said.

"Acquiring the management rights to the fund aligns with Newmark's investment philosophy, which prioritises disciplined asset management enhancing rental income and stable returns for investors.

"Newmark is committed to maintaining the Property Income Fund's legacy, while driving further growth through active asset management and increased investment in the fund."

Diamantopoulos said PIF will maintain its focus on investing across the property spectrum-providing investors with regular income through a diversified portfolio of listed, direct and unlisted property investments.

To support a smooth transition of PIF's management, Newmark and Australian Unity have agreed to work together on transitional arrangements for PIF following the transaction.