Investors in Australian Unity Investments’ (AUI) Wyong property syndicate today approved a proposal to convert the syndicate, along with other AUI retail property trusts and syndicates, into a single open-ended trust.
Investors in all five retail property syndicates and trusts have now voted in favour of the Proposal, which will result in the creation of the $400 million Australian Unity Retail Property Fund*. It will be one of Australia’s largest unlisted retail property funds, holding seven properties including shopping centres and service centres in New South Wales, Queensland, Western Australia and Victoria.
Mr Adam Coughlan, AUI’s general manager – retail, said that investors in the Wyong syndicate voted overwhelmingly in favour of the Proposal.
“The Proposal was put before investors because we believe that the conversion into a single open-ended trust will bring significant benefits to them.
“It also allows for future development and improvement of the properties, which is limited by the syndicate structure. Our Waurn Ponds property in Geelong, Victoria, is an excellent example of the advantages that turning a syndicate into an open-ended trust can provide.
“Investors will retain an interest in properties that have delivered outstanding returns for them over a number of years,” Mr Coughlan said.
Investors will exchange their current units for interests in the stapled Retail Property Fund, without triggering material tax consequences and without interrupting distributions. There will also be an initial withdrawal offer (subject to a maximum cap of $20 million).
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity Limited. It has over $5.2 billion in funds under management (as at 31 January 2009). Its investment approach is to use its established in-house expertise in property and mortgages while also forming joint ventures and strategic alliances with other organisations with specialist expertise.
*as at 28 February 2009
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For more information please contact:
Mr Adam Coughlan
Email: acoughlan@australianunity.com.au