The investors for a $5 billion AMP Capital property fund have voted to dump its manager and merge with a Dexus wholesale fund, following its initial offer last year.
AMP Capital acknowledged the outcome for the AMP Capital Diversified Property Fund (ADPF) on Tuesday afternoon, which will see it consolidate with the Dexus Wholesale Property Fund.
Real estate investment company Dexus will gain control of ADPF’s approximate $5 billion in assets under management, including a 50 per cent stake in the Quay Quarter Tower, a number of Westfield shopping centres, as well as other industrial sites.
The fund’s responsible entity, AMP Capital Funds Management, had established an independent board committee to assess the unsolicited merger proposal it received from Dexus last year.
AMP Capital had also fought back, providing an alternative proposal for consideration by ADPF unitholders, however the independent board committee had recommended the Dexus deal.
AMP Capital head of real estate Kylie O’Connor commented while AMP Capital “submitted a compelling alternate proposal with significant capital support”, it respects the investors’ decision to seek the scale the merger will provide.
“Real estate remains an integral part of AMP Capital’s Private Markets business, which is about to embark on a separation from AMP,” Ms O’Connor noted.
“The team is focused on continuing to provide innovative real estate investment solutions for investors, as well as growth opportunities, as part of the newly created entity.”
AMP Capital Funds Management will cease to act as responsible entity for ADPF, and a transition for unitholders is set to commence.
The property management for ADPF’s fully-owned industrial properties, as well as fund and support services, will be transitioned over the next few months.
AMP Capital has said it will continue to property manage assets held by ADPF that are co-owned with other AMP Capital managed funds.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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