Australian Unity Office Fund (AOF), managed by Australian Unity Investment Real Estate Limited (AUIREL), has announced a significant setback regarding the sale of its 150 Charlotte Street property in Brisbane. Australian Unity Office Fund is an ASX-listed real estate investment trust that owns a portfolio of office properties across Australia. AUIREL, as responsible entity, reported that the purchaser of the Charlotte Street property defaulted on payment obligations, failing to complete settlement by the due date of 22 August 2025. A notice of default has been issued, giving the purchaser until 8 September 2025 to remedy the situation, failing which AUIREL may terminate the contract and retain the $4.8375 million cash deposit.
The initial contract of sale, entered into on 18 April 2024, was for a net sale price of $61.5 million. Following a request from the purchaser, the settlement was deferred to August 2025, and the net sale price was increased to $63.5 million. However, uncertainty arose when the purchaser proposed an alternate settlement structure involving deferred payments. Due to the uncertainty surrounding the settlement, AUIREL commissioned an updated independent valuation of the Charlotte Street property. The new valuation assessed the fair value at $52.5 million, reflecting the property’s current 96% vacancy rate.
In light of these developments, AOF has withdrawn its previously provided distribution guidance, which had assumed the Charlotte Street sale would settle in August 2025 under the original terms. AOF has received a revised offer from the purchaser to acquire Charlotte Street for $54.5 million (inclusive of the deposit), with settlement in March 2026. The revised offer is subject to contract, and the AUIREL Board is currently considering it.
AOF expects to release its results for the year ending 30 June 2025 on Thursday, 28 August 2025. As of 30 June 2025, AOF held approximately $26 million in cash and cash equivalents, including the deposit received for Charlotte Street.
