This article is from the Australian Property Journal archive
MIRVAC has won management rights to the $7.7 billion AMP Capital Whole Office Fund (AWOF) after shareholders thwarted the pending shift in control to Dexus.
About 60% of shareholders voted for the transfer, which upends Dexus’s plans to take assume local management rights of AMP’s Collimate Capital’s $27.9 billion worth of local real estate and infrastructure assets.
AWOF is comprised of 11 prime-grade assets concentrated in the Sydney and Melbourne markets. The portfolio is underpinned by assets such as Quay Quarter Tower in Sydney, and Collins Place in Melbourne, and has a weighted average lease expiry of 5.5 years, an occupancy rate of 92.5% by income and NABERS Energy rating of 5.3 Stars.
As a result of the transaction, Mirvac’s third-party capital under management will grow by about 76%, increasing to circa $18.1 billion.
AWOF will be known as the Mirvac Wholesale Office Fund, and Mirvac will offer AWOF $500 million of liquidity that is expected to be utilised within six months.
“The addition of the $7.7 billion fund is an acceleration of Mirvac’s long stated strategy to grow our third-party funds under management with aligned capital partners, and further enhances our position as a top tier manager of prime office assets in Australia,” Mirvac’s CEO and managing director, Susan Lloyd-Hurwitz said.
“We are pleased to offer AWOF unitholders reduced fees, a standalone trustee with a majority independent board and access to Mirvac’s market-leading, integrated asset creation and curation capabilities and platform including our $9.2 billion office and mixed-use development pipeline.”
Under the deal with Dexus, AMP could have gained up to $300 million via an earn-out consideration depending on how many funds and mandates remained on the platform following the handover. That has been whittled down to $75 million.
Dexus will now take on a maximum of $20.2 billion in assets under management.
The deal for Dexus to assume local management rights of Collimate Capital scuppered AMP Limited’s plans to spin off the recently rebadged billion asset management arm
