Daily A-REIT Wrap: 19 July 2022

• AWOF investors voted in favour of Mirvac becoming trustee
• SCP's Mark Fleming will become COO, and Head of Funds Management and Strategy
• Irongate was officially removed from the list following acquisition

The ASX200 closed today at 6,649.60 points, down 37.50 points or 0.56%. Resources and mining made the top five performers, with no real estate companies on either the top five gains or declines for the day.

Top-performing ASX listed real estate company shares: 19 July 2022

Source: ASX

The movement

Yesterday, Irongate Group (ASX: IAP) was removed from the official list at the close of trading. The removal follows the Charter Hall and PGGM acquisition of Irongate.

Yesterday also saw AMP Capital Wholesale Office Fund (AWOF) investors voting to change the trustee and manager of the fund. AMP said, “The decision to change manager and trustee does not affect the completion of the sale of the real estate and domestic infrastructure equity business to Dexus, which is currently anticipated for the end of September.”

AMP also said, “The maximum earnout payable to AMP under the sale terms has reduced to ~A$75million, as a result of the AWOF management rights not transitioning to Dexus and, separately, the loss of an investment mandate (representing A$3.0 billion in assets under management) identified in the sale announcement on 27 April 2022.”

Dexus said the reduced earn-out amount will take the maximum potential price to approximately $325 million including the $250 million upfront cash payment. The maximum potential AUM that will transition across to Dexus is now $20.2 billion.

The company also said it will no longer acquire Collimate Capital’s committed co-investment stakes in AWOF totalling circa $270 million.

AMP Capital Investors Limited will be replaced by Mirvac Funds Management Australia Limited as the trustee of AWOF, with Mirvac expected to become trustee of AWOF in mid-October 2022.

Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said, “We are pleased to have been entrusted by AWOF unitholders with the management of one of Australia’s leading unlisted office funds. The addition of the $7.7 bn fund is an acceleration of Mirvac’s long stated strategy to grow our third-party funds under management with aligned capital partners, and further enhances our position as a top tier manager of prime office assets in Australia.”

Today, SCA Property Group (ASX: SCP) announced Mark Fleming will step down as CFO effective 1 September 2022 and has been appointed as COO, and Head of Funds Management and Strategy effective 1 September 2022. Mr Fleming will remain an Executive Director of SCP following the appointment.

Current Head of Corporate Finance, Greg Inkson, will be appointed interim CFO effective 1 September 2022.

Finally for today, Kennard’s Self Storage has acquired a former Masters Hardware store in Victoria from HMC Capital (ASX: HMC), previously known as Home Consortium.

Sold off-market, Roxburgh Park is one of the last remaining assets held directly by HMC Capital, with the deal reflecting a 52% premium to the December 2021 book valuation.

Read more here.

That’s the latest in A-REIT.