Gilbert + Tobin is advising Cromwell Direct Property Fund (CDPF) on its proposed merger with Australian Unity Diversified Property Fund (AUDPF) and, separately, Cromwell Corporation Limited on its proposed acquisition of Australian Unity Property Limited.
Cromwell Property Group is a real estate investor and fund manager with operations in Australia, New Zealand and Europe. Cromwell Direct Property Fund is comprised of a quality portfolio of 9 commercial property assets.
The merger between CDPF and AUDPF, which is proposed to be implemented via a trust scheme, will create a merged fund with a diverse portfolio of 15 high-quality assets valued at approximately $1.1 billion. 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’s market-leading Corporate Advisory team advised on the deals, led by partners Costas Condoleon and Kevin Ko, with lawyers Jessica Liang, Andrea Bennett and Maria Bletsas. The core team was also supported by specialists across the firm, including Real Estate + Projects partner Amanda Hempel and special counsel Jo Bayes.
Costas Condoleon and Kevin Ko said, "We are thrilled to be advising Cromwell on these important transactions as it implements its strategic pivot towards a capital-light funds management business model focussed on platform growth and increased funds under management.”
The merger is expected to be implemented in late 2023, subject to satisfaction of certain conditions precedent including a successful vote in favour of the merger from AUDPF unitholders.