Charter Hall Group Acquisition of 19.9% strategic interest in AOF

Acquisition of 19.9% strategic interest in AOF and entry into Framework Agreement

Abacus Property Group (“Abacus”) and Charter Hall Group (“Charter Hall”) (together “the Consortium”), today announce that they have:

• acquired a 19.9% strategic interest in Australian Unity Office Fund (ASX:AOF) for a total consideration of $95.6 million, equivalent to $2.95 per AOF unit;
• established a special purpose entity for the purposes of the acquisition and holding their interest in AOF (the "Consortium Entity"). Abacus and Charter Hall each own 50% of the Consortium Entity; and
• entered into a framework agreement pursuant to which it is proposed that the parties co-operate for the purposes of pursuing a transaction involving the acquisition of all of the AOF units not currently held by the Consortium Entity.

AOF owns a portfolio of 9 office properties located in 5 Australian capital cities that is consistent with Abacus’ and Charter Hall’s investment objectives. Both Abacus and Charter Hall are very familiar with AOF’s property portfolio, and the sub-markets that these properties are located in.

The attached substantial holder notice has been lodged on behalf of the Consortium in relation to the acquisition of its interest in AOF.

The Consortium will seek to initiate discussions with AOF’s Responsible Entity regarding a potential transaction.