Discussions will continue with potential suitors for Collimate’s international infrastructure equity business,“after receiving a number of approaches from parties interested in acquiring the business,” AMP said.
The deal with Dexus includes an upfront cash payment of $250 million and an earn-out consideration of up to $300 million depending on the size of the local $27.9 billion investor pool,split $18.2 billion in real estate and $9.7 billion of domestic infrastructure equity,that transitions to Dexus’ platform.
AMP has rebranded its $44 billion funds management platform,changing its name from AMP Capital to Collimate Capital,ahead of a planned demerger and separate listing on the stock exchange later this year. Following the deal,it will no longer pursue a demerger,it said.
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AMP chair Debra Hazelton said the sale was a “strong outcome for AMP shareholders and Collimate Capital stakeholders”.
“As we work towards completing the transaction,a key priority for our board will be returning capital to AMP shareholders in acknowledgement of their patience as we have pursued options to maximise value for them.”
Dexus will also acquire equity stakes held by Collimate in various funds,including units in the flagship AMP Capital Wholesale Office Fund,worth up to $450 million.