AMP Capital Investors has entered an agreement to acquire 50 per cent of MacarthurCook Industrial Real Estate Investment Trust’s (MI REIT) management and property management companies and has also invested around $42.6 million for a cornerstone stake of up to 19.2 per cent in the investment trust itself.
The proposed transaction involves AMP Capital Investors acquiring 50 per cent of the Singapore REIT management and property management companies, which manage the Singapore Exchange-listed MacarthurCook Industrial REIT from MacarthurCook, a subsidiary of the AIMS Financial Group.
Under the deal, AMP Capital Investors will also become a cornerstone investor in the listed MI REIT by acquiring up to approximately 19.2 per cent of MI REIT and will also sell four high quality Singapore industrial assets to MI REIT.
AMP Capital Investors Head of Asian Property Simon Vinson said: “This is an excellent opportunity for AMP Capital to enter the Singapore REIT market by taking a cornerstone stake in MI REIT, and at the same time leverage our property investment expertise through forming a long term joint venture with a property management company which has a strong track record in real estate funds management in the Asia Pacific.
“MI REIT has a high quality portfolio valued at approximately A$389 million and we believe our extensive property fund and asset management capabilities, improved portfolio diversification through MI REIT’s acquisition of additional assets and its recapitalisation will competitively position it for growth,” Vinson said.
In the new joint venture, the MI REIT management team will continue with Nicholas McGrath as chief executive, with the MI REIT Board to include two AMP Capital nominated directors.
The Singapore Exchange has given in principle approval for the transaction, which is subject to a vote by MI REIT unit holders at a meeting on November 23.
The Singapore joint venture will be known as AIMS AMP Capital Industrial REIT Management and MI REIT will be re-branded and trade as AIMS AMP Capital Industrial REIT from 28 December 2009, subject to approvals.
