Two unlisted funds plan $424m merger AUSTRALIAN Unity Investments is looking to merge two unlisted funds it manages to create a $423.62 million commercial property vehicle. The proposal will see the $95.61m Australian Unity Fifth Commercial Trust merged with the larger $328.1m Australian Unity Office Property Fund. The OPF is an open-ended unlisted property fund that owns eight office buildings in Sydney, Melbourne, Adelaide, Brisbane and Canberra. Its asset value is forecast to increase to $366m by June next year, taking the merged entity's total assets after consolidation to $461.61m. FCT jointly owns an office building in Adelaide with OPF as well as an office property in North Ryde, Sydney. FCT had been looking to offload the properties ahead of its scheduled termination date in 2015. If the merger is approved, investors in FCT can opt to realise all or part of the investment through an initial $15m capped withdrawal offer. Further opportunities for withdrawals will be available after the merger. AUI general manager, real estate investment, Mark Pratt said the merger would ensure certainty of transaction values for the remaining properties. "As the OPF is open to new investment, it can also raise capital and acquire or dispose of assets in order to take advantage of market opportunities in line with Australian Unity's active asset management," he said. Investors in FCT will vote on the proposal on December 11.