AMP Capital
AMP Capital. Images – website
  • AMP Capital has agreed to sell its 50% stake in Precinct for $197M
  • AMP said it expected an $80 million profit in the deal
  • In another announcement, AMP said its exclusivity with Ares had expired

AMP Capital has sold off its 50% stake in a New Zealand real estate investment trust (REIT) for $197 million.

It had held the stake in Precinct Properties New Zealand (‘Precinct’) since 1997.

Over the years, AMP has delivered on more than a billion dollars’ worth of developments, with Precinct becoming one of NZ’s leading listed property businesses.

In a statement to the ASX, AMP said it expected an $80 million profit in the deal, subject to foreign currency and other adjustments.

AMP Capital does not believe the cessation of Precinct management fees should materially affect its earnings going forward.

AMP Capital is a diversified investment manager across various asset classes, including equities, fixed interest, infrastructure, real estate, diversified and multi-manager and multi-asset funds.

Other Deals

In a separate announcement, the company said the 30-day exclusivity period with Ares Management had expired, and that there was “no certainty” the transaction would go ahead. Ares had expressed an interest in buying 100% of AMP Capital’s private markets business.

Any such transaction would then have to go for approval from AMP shareholders.

Earlier this month, AMP Capital and Dexus agreed on the $5 billion takeover of its AMP Capital Diversified Property Fund (ADPF).

The agreement – which now goes to unitholders for a vote – will see Dexus merge the fund into its own Dexus Wholesale Property Fund (DWPF).

Assets include Quay Quarter Tower in Sydney (50% ownership, under construction), 309-321 Kent Street, Sydney (also 50%, with the other half co-owned by Dexus), Westfield Booragoon, Perth (50%) and Westfield Warringah Mall, Brookvale, Sydney (25%).

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AMP Capital is a global investment manager headquartered in Sydney, Australia. Its parent organisation is AMP Limited, which was established in 1849. AMP (ASX: AMP) shares are $1.28 at the time of publication.

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