Last-minute delays delay vote on $7.5 billion AMP desktop fund
Instead, the independent chair of the next meeting, former ASIC chairman Alan Cameron, decided to postpone the vote until Monday evening, with proxies expected on Saturday, to allow investors to consider the merits. of AMP Capital’s defunct sweetener.
“It may be desirable for members to have more time to review the AMP Update and determine whether any information contained in the AMP Update affects the member’s voting decision,” the published investor letter reads. Wednesday.
The meeting chair noted that an extended postponement of the meeting “would only add to the current uncertainty” and therefore opted to open the meeting on Friday before adjourning to 4 p.m. Monday.
The last-minute hitch is just the latest dramatic twist in the battle for control of the fund, as Mirvac’s bid relaunch this year after its initial pitch to run the vehicle was shortlisted the year last but ultimately did not succeed.
The fund itself holds stakes in major CBD landmarks, including the recently completed Quay Quarter in Sydney and Collins Place in Melbourne, and is considered the crown jewel of $28 billion in real estate and local infrastructure of AMP Capital.
Among its 30+ investors are some of the biggest institutional players in the country, including TCorp, Telstra Super, Victorian Funds Management Corporation and UniSuper.
The vote is expected to be close, with support finely balanced between rival fund managers Dexus and Mirvac. Investors will now consider the relative merits of an immediate fee waiver associated with Dexus’ longer-term base fee, which will eventually reach 35 basis points, versus Mirvac’s fee agreements, including a base fee. of 30 basis points.
The sweetener earlier this week also came with a sting in the tail, with AMP Capital warning that it would do little to help the transition to Mirvac, beyond its legal obligations, if the incumbent were rejected. by investors.