Dexus is set to acquire close to $31 billion of assets under management from AMP Capital, including all of its domestic real estate.
AMP Capital has agreed to sell the assets from its Collimate Capital real estate and infrastructure equity business to Dexus in a deal valued at least $250 million, after weeks of speculation.
Dexus has entered a share purchase agreement with AMP Limited to acquire Collimate Capital’s real estate and domestic infrastructure business, comprising $31 billion of assets under management.
As part of the deal, Dexus will acquire all of AMP's domestic real estate assets under managment of $21 billion.
In addition, Dexus will purchase AMP's domestic infrastructure, valued at about $10 billion.
Dexus will also purchase $450 million of AMP’s investment stakes, including $180 million existing and $270 million committed.
AMP is also set to receive a further cash earn out of up to $300 million, but considers it is unlikely the full earn out will be received given current expected loss of AUM about $3 billion.
AMP earlier this year rebranded its funds management platform as Collimate Capital, worth an estimated $44 billion.
Dexus plans to hold talks with Collimate investors in coming weeks around the transaction.
Optus Stadium, Karrinyup Shopping Centre, Ocean Keys Shopping Centre, Opal Health Centre and Eastfield Goldfields Prison are among AMP Capital's WA investments.
AMP said it remained in talks over Collimate’s international infrastructure equity business, after receiving a “number of approaches from parties interested in acquiring the business”.
Optus Stadium is among AMP Capital's WA assets.
AMP Limited chief executive Alexis George said the sale accelerated the realisation of value for AMP’s shareholders.
“In Dexus we have found a strong owner for the real estate and domestic infrastructure equity businesses, which will add significant value through their strong track record and experience in real estate and asset management,” he said.
“Their depth of talent will strongly complement our specialist teams.”
Dexus chief executive Darren Steinberg said the deal would expand Dexus’ offering and strengthen its position as a real asset manager.
“It delivers on our strategic objectives of being a real estate partner of choice and delivering resilient income streams, while enhancing our ability to leverage the key megatrends benefitting real assets,” he said.
“This alignment forges the pathway to creating long-term value for our Dexus Security holders and the investors across our funds management platform.”
Mr Steinberg added that infrastructure was the next logical step for Dexus’ funds management business, underpinned by compelling sector fundamentals and a positive growth outlook.
“The Collimate team has a strong track record and well-established relationships with investors; this will now be enhanced by the core skills across the Dexus platform,” he said.
“Our more than 35-year track record in funds management, alongside our experience in integrating funds management businesses and assets, supported by transition services from Collimate, will enable us to provide continuity of service to our investors and funds management partners during the transition.”
Dexus owns Jandakot airport and surrounding industrial infrastructure, which it purchased from Ascot Capital for $1.5 billion in 2021.
AMP Capital redeveloped the $800 million Karrinyup Shopping Centre and jointly owns Westfield Booragoon, which is set for a $500 million expansion.
Earlier this month, Dexus confirmed it was in talks with AMP over the Collimate portfolio.
