AUI is seeking to merge its Australian Unity Fifth Commercial Trust and its Australian Unity Office Property Fund.

Australian Unity Investments (AUI) is seeking approval from investors in the Australian Unity Fifth Commercial Trust (FCT) to merge the trust with the larger, more diversified, Australian Unity Office Property Fund (OPF).

Investors in FCT will be eligible to vote on the Proposal via proxy or by attending a general meeting of investors on Wednesday 11 December 2013, in Melbourne.

OPF is an unlisted property fund, which owns eight quality office buildings in some of Australia’s major centres, with a forecast total asset value of approximately $366 million (30 June 2014).

FCT is a fixed term trust due to terminate in 2015. By making the Proposal now, AUI is seeking to maximise the value of FCT’s remaining properties at 5 Eden Park, North Ryde NSW and 30 Pirie Street, Adelaide SA (already 50% owned by OPF). The Proposal allows FCT to effectively transfer its interests in both properties to OPF at an agreed valuation; which removes the reliance on the risks of a sale process, and involves no selling costs.

Mark Pratt, General Manager Australian Unity real estate investment, said the merger would provide investors with a cost and tax effective option to continue their investment in commercial property.

“We believe the proposal is in the best interests of investors in FCT and will deliver a number of key benefits.

“OPF is forecast to provide higher distribution returns than those forecast for FCT, has greater diversification than FCT, and intends to continue providing regular capped withdrawal opportunities to investors.

“Investors will have the ability to continue their exposure to the property market via an investment in the OPF – a diversified fund open to new investment that has been operating for more than eight years.

“The Proposal ensures certainty of transaction values for the remaining properties in the Trust, no selling costs and the opportunity to consolidate the joint ownership of 30 Pirie Street, Adelaide SA, providing greater control over its asset management strategy.”

Mr Pratt said if the merger was approved, FCT investors would pay lower management fees, as the management fees for the OPF are lower.

“A number of investors in FCT have indicated to us they would like to maintain an investment in the Australian property market beyond FCT’s scheduled termination in May 2015.

“If investors vote in favour of the Proposal, their investment will transfer to the OPF with the dollar value of their investment remaining unchanged at the implementation date,” Mr Pratt said.

If the merger is approved, it provides investors in FCT the opportunity to realise all or part of the investment through an initial $15 million capped withdrawal offer equating to approximately 25 per cent of FCT’s net asset value. They may also have the opportunity to defer any capital gains tax (CGT) on their investment by opting for scrip for scrip rollover relief.

“It is also our recent practice, and future intention, to provide investors in the OPF with the flexibility to withdraw through half-yearly capped withdrawal offers,” Mr Pratt said

Mr Pratt said AUI is experienced in successfully bringing together investment vehicles. Earlier this year it merged the Australian Unity Second Industrial Trust with OPF following strong support from investors, and in 2009 it converted five retail property syndicates and trusts into a single fund, the Australian Unity Retail Property Fund.

“We believe a merger would broaden FCT investors’ diversification of properties by tenant and geography. As the OPF is open to new investment, it can also raise capital and acquire or dispose of assets in order to take advantage of market opportunities in line with Australian Unity’s active asset management,” he said.

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Matt Englund, Head of Dealer Groups at BT Financial Group today announced that Minchin Moore Private Wealth has joined BTFG’s Securitor network.

“We are delighted to welcome Minchin Moore Private Wealth into the fold as the quality of the business is the right cultural fit with Securitor: a boutique advisory firm specialising in personalised strategic advice firmly focused on the needs of their clients. This is a coup for the Securitor Dealer Group,” Mr Englund said.

Minchin Moore Private Wealth is the result of a merger between the highly successful Minchin Private Wealth practice that is already part of the Securitor network and Peter Williams’ established Sydney based practice that operated under a different AFSL.

Peter Williams, one of the founding directors of Minchin Moore Private Wealth has 25 years experience managing a financial advice practice catering to the needs of HNW and ultra-HNW clients. In 1984 Peter was a founder of leading Sydney chartered accounting practice Williams Hatchman & Kean, now part of the publicly listed WHK group.
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Nick Mundy and Tom Jeffries, formerly with BT Financial Group, have joined Minchin Moore Private Wealth as advisers and Jenny Wong, formerly AMP and Macquarie, has been appointed as operations manager.
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When asked why they chose Securitor Peter Williams said, “Securitor is renowned as a dealer group that provides freedom within a framework for established practices that want to grow. We wanted to join forces with a dealer group that would allow us to flourish within our own business model and that provides industry leading support services.”
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Securitor recently announced that they are actively looking to build their network.
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“While we are assisting our existing Securitor practices to organically grow their businesses we are also looking to bring in new practices but it is quality without compromise. The criterion has to be met as the culture and community of Securitor’s like-minded professional advisers is core to the strength of the group,” Mr Englund said.x

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In the retail investments, superannuation and retirement markets AMP will maintain both the AXA North and AMP Flexible Super offers.

For corporate superannuation, AMP’s SignatureSuper will be its medium and large corporate superannuation product while AMP Flexible Super will target small to medium businesses’ superannuation needs.

AMP will initially continue to have two distinct personal insurance product offers, AMP’s Flexible Lifetime Protection and AXA’s Elevate and will continue to invest in both product ranges to ensure they remain competitive.

The company will build, within the next two years, a new retail insurance product range that takes the best attributes of the two current offerings. The transition to the new product will be managed in a way that safeguards the interests of existing customers and will include AMP’s current practice of refreshing the features on its back book of business.
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AMP will continue to support both the AMP and AXA group risk products, enhancing AMP’s group risk offer that supports AMP’s mastertrust superannuation product and investing in AXA’s standalone offer, to capitalise on profitable growth opportunities.
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AMP Financial Services Managing Director Craig Meller said that while the decisions are high level, they provide the foundations needed for the new merged business.
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“The initial six week planning process brought together people from both AMP and AXA so we could learn more about each business and jointly decide on some of the elements of the combined company – and this is what we’ve done.
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“The decisions announced today draw on the strengths of both businesses to build a new, stronger and more competitive wealth management company,” Mr Meller said.

AMP will continue its multi-brand approach to financial advice and will look at ways to further support all its financial planning businesses.

“We are using the assets and capabilities of the combined business to enhance the value propositions we offer our aligned planners and advisers, while maintaining the differentiation they value.
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“These enhancements include new, competitive finance packages through AMP Bank and the broader rollout of AXA’s North platform,” Mr Meller said.
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As previously announced, AMP will retain the AXA North platform as its wrap platform. It will provide a base for the company to compete more strongly in both investment and superannuation markets.
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The existing AXA platform consolidation strategy to migrate the Summit, Generations and iAcess offers to the technology platform on which North operates will continue.   The merged business will maintain the competitiveness of Summit, Generations and iAccess through continued investment and enhancements.

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The upgrade brings the life insurer in line with AMP Life Limited’s AA- rating.

AMP Limited merged with AXA Asia Pacific’s Australian and New Zealand businesses on 30 March 2011.

AMP Limited’s Chief Financial Officer Paul Leaming welcomed S&P’s decision saying it reflected the stronger market position of the merged business.
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“The upgrade reflects the merged group’s leadership position in wealth management, the complementary fit of the AMP and AXA businesses and the funding mix for the merger, which is consistent with both AMP and AXA’s prudent approach to capital management,” Mr Leaming said.

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Under the proposal, AMP will acquire 100 per cent of AXA APH, merging AXA APH’s Australian and New Zealand businesses with those of AMP, and divesting AXA APH’s Asian businesses to AXA SA.

The Share Scheme is expected to become effective on 8 March 2011 when AXA APH lodges a copy of the Court order approving the Share Scheme with ASIC.

The Share Scheme’s implementation date will be 30 March 2011 and normal trading of new AMP shares issued to AXA APH shareholders under the Share Scheme will begin under the ASX code “AMP” on 31 March 2011.

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AMP Chief Executive Officer Mr Craig Dunn said the vote was a significant milestone for the proposed merger.

“A merged AMP AXA will bring together two of Australia’s longest standing businesses. It will deliver a new force in financial services by creating a company with the size and resources to be a strong competitor to the big four banks in wealth management.

“Today’s vote brings the competitive benefits of this merger one step closer for consumers and businesses in Australia and New Zealand,” Mr Dunn said.

Under the Scheme of Arrangement to give effect to the proposal, AXA APH shareholders will receive the equivalent of A$6.43 per share.

The second court hearing to approve the Scheme will take place on Monday 7 March 2011. If approved, the Scheme will become effective on 8 March 2011. , consisting of cash and AMP shares. AXA APH shareholders will also receive AXA APH’s 2010 final dividend of 9.25 cents per share.

Normal trading of new AMP shares issued to AXA APH shareholders under the Scheme would then commence under the ASX code “AMP” on 31 March 2011.

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