- AMP (AMP) will continue to manage the AMP Capital Wholesale Office Fund (AWOF), a $7 billion unlisted office fund
- The AWOF Trustee Board concluded that continuing AMP Capital as trustee and management of the fund is in the best interests of all unitholders
- AMP anticipates providing up to $500 million in financial support to the real estate division ahead of the demerger of its private markets division
- Shares in AMP are up 2.64 per cent to $1.17 at 1:34 pm AEDT
AMP (AMP) said its investment management business AMP Capital will continue as manager of its $7 billion unlisted office fund AMP Capital Wholesale Office Fund (AWOF).
The AWOF Trustee Board determined that it is in the best interests of all unitholders for AMP Capital to continue as trustee and manager of the fund.
Following an evaluation of management bids submitted from AMP Capital and two selected rivals, the Trustee Board, which was guided by an Independent Advisory Committee (IAC) and external legal and financial consultants, reached the decision.
AMP Capital will continue to manage AWOF and will adopt various improvements under its proposal, including revisions to the fund’s governance, enhanced management alignment, and lower fee arrangements.
Ahead of the expected demerger of AMP Capital’s Private Markets division, AMP has committed to providing alignment capital to assist AWOF and other real estate funds managed by AMP Capital.
AMP anticipates providing up to $500 million in financial support to the real estate division ahead of the demerger.
AMP CEO Shawn Johnson said AMP Capital remains committed to managing AWOF, which “is leading the MSCI/Mercer office index over one, two- and three-years”.
“Our strong track record, as well as the recent A$2.2 billion Pacific Fair and Macquarie Centre transaction — the largest of its type in Australian history — demonstrates our capability to continue delivering for our investors in real estate,” he said.
“This decision recognises the commitment of our real estate team, who deliver every day for AWOF unitholders, and follows a comprehensive and detailed review against our peers.”
Shares in AMP are up 2.64 per cent to $1.17 at 1:34 pm AEDT.