The proposal to merge the two funds was developed by AUI, creating a $360 million property fund holding commercial properties in Sydney, Melbourne, Adelaide, Brisbane, Canberra, and Perth.
 
Mr Mark Pratt, AUI’s head of property, mortgage and capital markets, said investors strongly supported the proposal, with 89.8 per cent voting in favour.
 
“Australian Unity Funds Management, as the responsible entity, developed the proposal because it believes a merger of the two funds is in the best interests of SIT investors, as well as the existing investors in OPF.
 
“SIT was a closed-end syndicate that was due to terminate in June 2014. Through the merger we are providing investors an opportunity to maintain their exposure to quality commercial property investments, better diversify their property exposure, and have the opportunity to defer capital gains tax (CGT) on their investment.
 
“Having spoken with a number of investors, many of them expressed a desire to maintain their investment in the Australian property market beyond SIT’s scheduled termination,” Mr Pratt said.
 
As part of the proposal, investors in SIT will be offered an initial $5.7 million capped withdrawal offer equating to approximately 25 per cent of SIT’s forecast net asset value at the withdrawal offer date.  This is in addition to around 46 cents per unit already returned to SIT unitholders since December 2006.

The post Merger of AUI property fund approved by investors appeared first on AdviserVoice.