AMP Capital retains as manager of AWOF

November 24, 2021 05:25 PM AEDT

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AMP Capital retains as manager of AWOF — Image source: shutterstock.com

Highlights

AMP Capital wins over its contenders in retaining the management of the AU$7 billion AMP Capital Wholesale Office Fund (AWOF).

AWOF's management has been in question since May following the talks of a merger with a rival vehicle.

The Company has anticipated that its total capital support to the real estate business ahead of demerger will be approximately AU$500 million.

ASX-listed financial management services provider AMP Limited (ASX:AMP) announced on Monday that its subsidiary AMP Capital has retained the management of the AU$7billion AMP Capital Wholesale Office Fund (AWOF).

AWOF's management has been in question since May following the talks of a merger with Dexus Wholesale Property Fund (DWPF).

The Company revealed via an announcement dated 22 November 2021 that the Trustee Board for AWOF has decided that it is in the highest interest of unitholders for AMP Capital to remain as trustee and manager of the fund. According to AMP, the Trustee Board, advised by an Independent Advisory Committee (IAC) along with external legal and financial advisers, arrived at the decision following a comprehensive assessment of management proposals received from AMP Capital and two other shortlisted contenders. Following this, AMP Limited will provide alignment capital to support AWOF and additional real estate funds managed by AMP Capital prior to the planned demerger of AMP Capital's Private Markets business. The Company has anticipated that its total capital support to the real estate business ahead of demerger will be approximately AU$500 million.

Today, the stock AMP was spotted trading 1.340% lower at AU$1.105 per share on ASX at the time of writing this article.

Bottom Line:

AMP's strong track record, along with the recent A$2.2 billion Pacific Fair and Macquarie Centre transaction, demonstrates the Company's capability to continue showing robust performance for its investors in real estate.