Fund Manager Summary
The outlook for the Australian Unity Office Fund (AOF) appears bleak, as the fund managers believe the opportunity for future growth is severely limited. In their opinion, the recent sale of AOF's last asset at a 35% discount highlights significant challenges, leading to a consensus that the fund is in the process of winding down. With the share price around $1.09, they have decided to exit their positions, citing that the upside is minimal moving forward. Despite initial expectations, the managers acknowledge that the investment thesis did not materialize, prompting their decision to sell at breakeven.
Source: Trading View
Commentary From The Managers
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Wilson Asset Management
3 Sept 2025
$0.42
Summary
- Wilson Asset Management sold their investment in AOF after divesting all assets at reasonable prices.
- The initial purchase was made at a discount to asset value.
- The remaining asset, 150 Charlotte Street in Brisbane, presents a dilemma: sell now or invest $20 to $25 million to lease it.
- If leased, the asset's value could rise to $90 to $100 million, complicating the board's decision.
- WAR's investment has performed slightly ahead, with a current share price of 42 cents.
- Distributions and capital returns have been received since the initial investment.
- The company's NTA valuation was reported at 47 cents, indicating potential upside of 10% to 11% from current levels.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Wilson Asset Management
3 Sept 2025
$0.42
- Wilson Asset Management sold their investment in AOF after divesting all assets at reasonable prices.
- The initial purchase was made at a discount to asset value.
- The remaining asset, 150 Charlotte Street in Brisbane, presents a dilemma: sell now or invest $20 to $25 million to lease it.
- If leased, the asset's value could rise to $90 to $100 million, complicating the board's decision.
- WAR's investment has performed slightly ahead, with a current share price of 42 cents.
- Distributions and capital returns have been received since the initial investment.
- The company's NTA valuation was reported at 47 cents, indicating potential upside of 10% to 11% from current levels.
Summary
Wilson Asset Management
31 Mar 2025
$0.88
- Wilson Asset Management sold their investment in Australian Unity Office Fund (AOF) due to its planned orderly wind down of operations.
- AOF’s property portfolio is currently under contract for divestment, with proceeds being returned to unitholders.
- AOF’s share price saw a 1.8% increase following the announcement of a 24 cents per unit special distribution to unitholders.
- On 21 March, AOF confirmed plans for a further 40 cent distribution in April, following the settlement of another property sale.
- Future distributions are anticipated, with an expected 47 cents per unit in May and remaining capital distribution projected for October 2025.
Summary
Oracle Advisory Group
31 Dec 2024
$1.09
- Oracle Advisory Group sold their investment in Australian Unity Office Fund (AOF) due to significant changes in the fund's position.
- AOF has fully divested by selling its last asset.
- The final asset was sold at a 35% discount, which was lower than anticipated.
- Oracle Advisory Group believes that the upside potential for AOF is minimal moving forward.
- Despite the outcome not aligning with their initial thesis, they exited the position at breakeven.
Summary
Wilson Asset Management
30 Nov 2024
$1.05
- Australian Unity Office Fund (ASX: AOF) is a listed property fund investing in a diversified portfolio across Australian metropolitan and CBD markets.
- AOF experienced a decline in investment performance in November due to a disappointing asset sale at lower-than-expected valuations.
- This resulted in a write-down of AOF’s net asset position.
- Despite this setback, the share price discount to net assets at which Wilson Asset Management acquired its initial holding in AOF remains a positive factor.
- Capital returned by AOF to date has provided a margin of safety for the investment.
- Wilson Asset Management continues to hold AOF because it reinforces their investment strategy’s ability to mitigate downside risks while capturing upside potential in undervalued assets.
Summary
Oracle Advisory Group
30 Sept 2024
$1.22
- Oracle Advisory Group initiated a position in Australian Unity Office Fund (AOF) during the quarter.
- AOF represents a special situation as it is a REIT in windup.
- Management has decided to sell down all assets and return capital to shareholders.
- Initially, AOF held 9 office buildings; currently, only 4 assets remain.
- Entering during the wind down phase potentially enhances return prospects.
- The fund manager believes that the sale of the majority of assets has mitigated risks associated with potential returns.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"With Australian Unity Office Fund seemingly winding down and assets sold at a staggering 35% discount, the outlook appears bleak. Exiting at breakeven may be prudent, but the minimal upside suggests investors should tread carefully in these uncertain waters."
Last Updated: 03 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in Australian Unity Office Fund (ASX:AOF)?
Fund managers including Oracle Advisory Group and Wilson Asset Management have invested in Australian Unity Office Fund (ASX:AOF).
Why do fund managers invest in Australian Unity Office Fund?
Fund managers have invested in Australian Unity Office Fund due to its previous potential for growth. However, recent developments, including the sale of its last asset at a significant discount and the decision to wind down operations, have led to a reevaluation of this investment. The consensus indicates minimal upside potential, prompting some fund managers to exit their positions at breakeven.
What happened to Australian Unity Office Fund (ASX:AOF)?
Fund managers are investing in Australian Unity Office Fund (AOF) due to its strategic asset management and potential for value appreciation. With the remaining asset at 150 Charlotte Street in Brisbane, there are options to either sell or invest further to enhance its value significantly. Currently, the fund is slightly ahead with a share price of $0.42, and the net tangible assets (NTA) indicate a potential upside of 10-11%, making it an attractive investment despite the challenges.