Australian Unity Office Fund (ASX:AOF) shares update on Aliro proposal

The independent directors of Australian Unity Investment Real Estate Limited (AUIREL) have formed a committee of the board to investigate Aliro’s non-binding indicative proposal to buy the Australian Unity Office Fund (ASX: AOF) for 2 .45 Australian dollars per unit.

Last week (May 30, 2022), AOF informed that it had received an offer of A$403 million from fund manager Aliro.

According to AOF, the offer came from the Sydney-based manager on behalf of the Aliro Group Office Value Fund (AGOVF). The deal is subject to various regulatory approvals.

Meanwhile, AOF shares were trading up 0.41% at AU$2.43 each on the ASX today (June 03, 2022) at the time of writing.

Read also : Why are Australian Unity Office Fund (ASX:AOF) shares flying high?

What is the value of the proposal?

The offer price represents a premium of 11.9% to AOF’s closing price of AU$2.19 on the trading day prior to publication of receipt of the proposal and a premium of 9.0% compared to AOF’s volume-weighted average price of AU$2.25 since the publication of AOF’s market update on May 4, 2022 disclosing the updated valuation of 2-10 Valentine Avenue, Parramatta.

In addition, as AUIREL indicated in its May 30 announcement, the following distributions to AOF unitholders would be permitted without reduction of the offer price: up to 3.80 centimes per AOF unit for the period ending June 30, 2022; up to 1.50 cents per AOF unit for the period ending September 30, 2022; and for each month after September 30, 2022. Any other payments announced or paid would be deducted from the offer price.

Aliro has the support of the listed fund’s main unitholder, Hume Partners, according to AUIREL. In the absence of a better offer, Hume Partners, which owns 19.97% of the shares of AOF, had given Aliro a “declaration of intention to vote” to vote in favor of the offer.

Source: © Paura |

Other offers received by AOF

AOF unitholders have previously rejected takeover attempts by Starwood Capital, including the latest A$485 million offer in January 2020.

Three years ago, Charter Hall teamed up with Abacus, another Australian property fund manager, to buy the Unity-managed Australian fund for A$495 million. Unitholders also rejected this offer.

About Aliro

Aliro is an investment, real estate development and fund management company. It works with a wide range of wholesale capital partners to actively create, grow and manage industry-specific real estate funds, resulting in long-term value for its clients and partners.

Daniel Wise and David Southon created Aliro together. Southon and David Harrison co-founded Charter Hall. However, Southon left the company in 2017 to start Aliro.

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Jose C. Birney