UPDATE 1-Australia's Dexus to merge fund with AMP Capital property fund
Adds details, AMP Capital statement
March 16 (Reuters) - Australian real estate developer Dexus DXS.AX said on Tuesday it had struck a deal to merge an unlisted property fund with a diversified real estate investment fund run by AMP Capital AMP.AX.
The company said unitholders of its A$10.1 billion ($7.82 billion) Dexus Wholesale Property Fund (DWPF) and the A$5 billion AMP Capital Diversified Property Fund (ADPF) were expected to vote on the merger in late April. nASX885GlX
"ADPF is a strategic fit with DWPF's existing portfolio providing additional exposure to premium assets," said Michael Sheffield, a fund manager at DWPF.
ADPF invests in the office, retail and industrial sectors, and its portfolio includes investments in Sydney's Quay Quarter Tower and Westfield Warringah Mall.
In a separate statement, AMP Capital acknowledged ADPF's decision to recommend the DWPF merger, but said it had put forward an alternate proposal which would deliver value to unitholders. (https://bit.ly/2Os7hft)
While AMP Capital did not disclose details of its proposal, it said it had the backing of its parent company AMP Ltd which had also informed U.S.-based Ares Management ARES.N.
Ares last month announced plans to buy 60% of the private markets business of AMP Capital for A$1.35 billion. nL4N2KV56K
($1 = 1.2900 Australian dollars)
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Leslie Adler and Kim Coghill)