Fund Manager Summary
Australian Unity Office Fund (ASX:AOF) is navigating a structured wind-down after selling its diversified portfolio, with a focus on returning capital to unitholders. Fund manager Wilson Asset Management highlights recent positive movements, including a 1.8% increase in share price to $0.88 following a special distribution of 24 cents per unit, and an anticipated 40 cent distribution in April from the sale of 2-10 Valentine Avenue, Parramatta. Despite these operational returns, risks remain centered around the remaining asset at 150 Charlotte Street, Brisbane, where strategic decisions loom regarding its future management versus sale. The share price currently reflects a slight gain of 42 cents, indicating a potential 10-11% upside, but the management's choices could significantly impact future valuations and distributions. Investors should consider the dual dynamics of capital returns and strategic asset management as the fund approaches full liquidation.
Source: Trading View
Commentary From The Managers
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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By reporting on thousands of qualitative investment insights, Thesis Tracker helps investors make better decisions beyond just financial metrics.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
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Share Price
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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By reporting on thousands of qualitative investment insights, Thesis Tracker helps investors make better decisions beyond just financial metrics.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
Updates are made available to members within 12 hours of being released. 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
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.
Wilson Asset Management
31 Mar 2025
$0.88
Summary
- 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.
Oracle Advisory Group
31 Dec 2024
$1.09
Summary
- 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.
Wilson Asset Management
30 Nov 2024
$1.05
Summary
- 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.
Oracle Advisory Group
30 Sept 2024
$1.22
Summary
- 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.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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 invest in the Australian Unity Office Fund (AOF) due to its diversified portfolio across major Australian markets and the structured return of capital to unitholders. With recent asset sales leading to special distributions, AOF's focus is on maximizing value from remaining properties. The fund's risk/reward profile has improved as it approaches the completion of its wind-down, offering potential for additional distributions and a positive return relative to its share price.
What happened to Australian Unity Office Fund (ASX:AOF)?
There have been no recent updates from fund managers regarding Australian Unity Office Fund although fund managers including Oracle Advisory Group and Wilson Asset Management have previously commented.
What is the short interest in Australian Unity Office Fund (ASX:AOF)?
According to ASIC filings, there is negligible or no short interest in Australian Unity Office Fund (ASX:AOF).
What does Australian Unity Office Fund (ASX:AOF) do?
Australian Unity Office Fund is a financial services and technology company focused on providing portfolio administration and investment solutions. It offers services in superannuation, retirement planning, and managed accounts to investors and financial intermediaries. Operating in the financial sector, the company is headquartered in Melbourne, Australia, and has been in operation since 1999.