Cromwell Property Group (ASX:CMW) has announced a merger between its Cromwell Direct Property Fund (CDPF) and the Australian Unity Diversified Property Fund (AUDPF), resulting in a $1.1B diversified portfolio of 15 high-quality assets.

The unified fund aims to provide improved geographic and sector diversification, as well as a strong average lease expiry and occupancy metrics to its unitholders from both CDPF and AUDPF.

Moreover, Cromwell plans to acquire the responsible entity for AUDPF, Australian Unity Property Limited, for $17M, with the condition of the merger's approval and implementation by AUDPF unitholders.

The merger slated for completion in late 2023 is subject to the satisfaction of certain conditions.