Mirvac takes over the management of the AMP office fund

Mirvac is now poised to take control of the $7.7 billion AMP Capital Wholesale Office Fund (AWOF) after a majority of unitholders voted to replace the current administrator, AMP Capital Investors.

A proposal to change the management of the fund was originally put forward last year, before AMP reached a deal to sell Collimate Capital’s real estate capital and national infrastructure business to Dexus Funds Management for $250 million. .

“We are delighted that AWOF unitholders have entrusted us with the management of one of Australia’s leading unlisted office funds,” said Susan Lloyd-Hurwitz, CEO and Managing Director of Mirvac.

“The addition of the $7.7 billion fund is an acceleration of Mirvac’s long-standing strategy to grow our third-party funds under management with aligned financial partners, and further strengthens our position as a premier manager. prime office assets in Australia.”

A combined proposal was put forward by AMP and Dexus to retain management of the fund, which included governance improvements and “significant alignment capital”.

“While this is a compelling proposition, AMP respects the decision of the investors in the fund and will comply with its legal obligations regarding the transfer of management rights,” AMP said.

As part of the $250 million sale to Dexus, AMP was to receive up to an additional $300 million subject to retention of assets under management (AUM) over a nine-month period.

However, the maximum earnout payable to AMP has now been reduced to $75 million due to AWOF’s management rights not being transferred to Dexus.

“The decision to change managers and trustees does not affect the completion of the sale of the equity real estate and domestic infrastructure business to Dexus, which is currently scheduled for the end of September,” AMP noted.

The maximum potential AUM that will pass to Dexus is now $20.2 billion. The company will also no longer acquire Collimate’s co-investment interests in AWOF totaling approximately $270 million.

“Dexus remains focused on completing the transaction which positions it as a leading real asset manager, with new capabilities and an expanded product offering, underpinned by our best practice governance and risk management framework” , said Dexus.

Mirvac said its third-party capital under management would increase by approximately 76% to $18.1 billion as a result of the transaction.

The company said it expected Mirvac’s trustee to become a trustee of AWOF in mid-October, from which Mirvac would serve as the fund’s investment manager and property manager.

“AWOF’s modern, high-quality portfolio, recently enhanced by the completion of Quay Quarter, is strongly aligned with Mirvac’s existing investment strategy and portfolio. We look forward to working with unitholders to continue to improve AWOF’s performance over time,” Ms. Lloyd-Hurwitz said.

Mirvac takes over the management of the AMP office fund

Investors voted to change the fund’s trustee and manager.

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Last update: July 20, 2022

Posted: July 19, 2022

Jon Bragg

Jon Bragg

Jon Bragg is a reporter for Investor Daily from Momentum Media, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.

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