The combination creates a 15-strong portfolio of high-quality assets, the firm says
Gilbert + Tobin (G+T) has provided guidance on a $1.1bn merger pitched between property funds Cromwell Direct Property Fund (CDPF) with Australian Unity Diversified Property Fund (AUDPF)
The proposed combination is set to create “a merged fund with a diverse portfolio of 15 high-quality assets valued at approximately $1.1bn”, the firm said. Under the proposal, the merger will be implemented through a trust scheme.
“This merger will provide unitholders from both funds with enhanced diversification, improved geographic and sector distribution, as well as stronger weighted average lease expiry and occupancy metrics”, G+T explained.
The expected timeline for the merger’s implementation is later this year once certain conditions precedent are met, such as AUDPF unitholders voting in favour of the move.
The firm is also advising Cromwell Corporation Limited on its pitched acquisition of Australian Unity Property Limited.
Partners Costas Condoleon and Kevin Ko led the corporate advisory team that worked on the transactions. They worked with lawyers Jessica Liang, Andrea Bennett and Maria Bletsas.
According to Condoleon and Ko, the deals are in line with Cromwell’s “strategic pivot towards a capital-light funds management business model focussed on platform growth and increased funds under management”.
Real estate and projects partner Amanda Hempel and special counsel Jo Bayes provided additional support along with other specialist lawyers.
