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Capital return for AOF?

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    Capital return for AOF?

    Hi MM team, AOF has been in the news this year with it trading at a substantial discount to its underlying asset value. With high some profile names scooping up shares for a quick return, the shares have risen and AOF have been in the process of divesting their portfolio and returning cash to shareholders. With contracts exchanged for all but their last holding and them now considering winding up the fund, I’m wondering the benefits of selling now vs waiting for the capital returns and what the relevant considerations are?

    Answer

    Hi Alan,

    AOF long-suffering shareholders are set to administer the $207mn fund its last rites as the 5-year battle to delist it draws to an end. There are rumors that a windup proposal could be put to shareholders as early as this week with its last properties in Canberra and St Kilda up for sale.

    However, settlement on two properties won’t be done until March 2025 hence if MM was long, we would be inclined to take our $$ and look for opportunities elsewhere in the market.

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    Australian Unity Office Fund (AOF)
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