The raid on Mirvac’s office funds draws fire from the AMP boss.

The deadly result is a blow to Dexus chief executive Darren Steinberg, who has worked hard to keep investors on the platform. General Counsel Brett Cameron said Monday that the final deal with AMP would now be worth about $325 million, instead of the $550 million maximum, if the remaining $20.2 billion remained on the platform.


“In addition, Dexus will no longer acquire Collimate’s committed co-investment interests in AWOF totaling approximately $270 million,” Cameron said.

Dexus is focused on completing the transaction, he said.

A major element of George’s turnaround strategy for AMP was to unbundle Collimate, formerly known as AMP Capital, and refocus AMP’s focus on retail wealth management.

George denied that the Collimate deal was undermined by the legacy of AMP’s handling of the Boe Pahari sexual harassment case.

“I’ve spoken to many investors over the past few months and they’ve given me feedback on where we needed to improve. I think that would be to simplify it down to one thing in particular,” she said.

Macquarie analysts said in a note on Tuesday that Mirvac will have “minimal near-term impact” for Dexus.

But it was “strategically significant” given that it could hamper Dexus’ ability to grow its desktop funds under management by using its own development pipeline to seed new assets and increase the size of the fund and its management fees, they said.

The same analysts said Mirvac’s success in capturing the fund will help its development pipeline.

“Through this transaction, AWOF could invest alongside Mirvac in future key office developments such as 55 Pitt Street, Sydney and 383 La Trobe Street, Melbourne,” the analysts said. Additionally, any such transaction will enhance investor confidence in the Mirvac pipeline.

Shares of Mirvac and Dexus fell slightly, in line with the rest of the equity market.

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Jose C. Birney