SPY414.74-1.33 -0.32%
DIA339.57-1.73 -0.51%
IXIC13,926.77-23.44 -0.17%

UPDATE 1-Australia's Dexus to merge fund with AMP Capital property fund

UPDATE 1-Australia's Dexus to merge fund with AMP Capital property fund

· 03/15/2021 19:17
UPDATE 1-Australia's Dexus to merge fund with AMP Capital property fund

Adds details, AMP Capital statement

- 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)

((Shashwat.Awasthi@thomsonreuters.com))