Deal off! Aus Unity Office Fund talks collapse

It remains to be seen whether AOF can revive the mooted deal, which came after it tried a handful of other corporate transactions and hired bankers and real estate agents to consider ways to maximize value for investors.

Its options included selling the vehicle, divesting some or all of the assets, or trying to refurbish its sites and continue to own them. Highbury Partnership and King & Wood Mallesons were advising AOF.

Aliro stumped up its $2.45 a security proposal in May, and spent the past few weeks negotiating with Hume about a revised proposal.

AOF securities last traded at $2.21. The listed fund has nine properties, including office buildings in western Sydney, Adelaide, Brisbane, Melbourne and Canberra, and was its portfolio was valued at $606 million at the end of December.

The Australian Unity-run fund has weathered a rocky few years after a $495 million takeover offer, proposed jointly by Charter and Abacus and supported by the board, was scuttled by investors.

More recently, the fund manager had advanced on a plan to merge the office fund with an unlisted commercial property fund, also run by Australian Unity, creating a $1.1 billion portfolio, before that proposal too was torpedoed by investors.

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