This article is from the Australian Property Journal archive
AFTER a pandemic induced lull, property merger and acquisitions activity is getting a shot in the arm with Dexus and AMP Capital merging their respective wholesale property funds which will own a $15.1 billion diversified portfolio of office, retail and industrial properties.
Following six months of discussions, the Dexus Wholesale Property Fund has entered into an implementation agreement with the AMP Capital Diversified Property Fund to staple the two trusts.
Dexus CEO Darren Steinberg said if the merger is approved and successfully implemented, the merged entity will provide existing DWPF and ADPF unitholders with an enhanced investment proposition.
“This merger delivers further economies of scale from a management, procurement and leasing perspective across the platform and is strongly aligned with our objective of being the wholesale partner of choice,” he added.
If the merger is approved, it will expand and diversify Dexus’s funds management business as well as diversify DWPF’s existing wholesale institutional investor base through the introduction of new investors.
DWPF fund manager Michael Sheffield said ADPF is a strategic fit with DWPF’s existing portfolio providing additional exposure to premium assets.
“The ability to merge this portfolio in a cost and capital efficient manner enables us to create a combined entity which delivers strong benefits to investors.”
Fund management executive general manager Deborah Coakley added: “We look forward to adding further value to the merged portfolio and welcoming new investors to our platform.”
DWPF is an open-ended unlisted property fund which currently owns interests in a diversified $10.1 billion portfolio of office, retail and industrial properties, including the MLC Centre in Sydney, 12 Creek Street Brisbane, 80 Collins Street Melbourne, Carillon City in Perth and 100 Mount Street in Sydney, just to name a few.
ADPF is currently a circa $5 billion diversified property fund and its investments include Quay Quarter Tower Sydney (50% interest) which is currently under construction, 309-321 Kent Street Sydney (50% interest, with remaining 50% co-owned by Dexus), Westfield Booragoon Perth (50% interest) and Westfield Warringah Mall in Brookvale, Sydney (25% interest) along with a diversified portfolio of industrial assets. ADPF also comprises minority investments in two other AMP Capital managed wholesale property funds.
