Dexus, AMP take steps to merge property funds worth $15 billion

Dexus, AMP take steps to merge property funds worth $15 billion

Two funds owned by Dexus (ASX: DXS) and AMP (ASX: AMP) have reached an agreement to merge more than $15 billion worth of property portfolios, but the deal still needs to be voted on by unitholders.

The implementation agreement (IA) reached between the $10.1 billion Dexus Wholesale Property Fund (DWPF) and the independent board committee of the $5 billion AMP Capital Diversified Property Fund (ADPF) are the fruit of discussions over the past six months.

"ADPF is a strategic fit with DWPF's existing portfolio providing additional exposure to premium assets," DWPF fund manager Michael Sheffield said.

"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."

These sentiments were echoed by Dexus CEO Darren Steinberg.

"We are pleased to be able to make progress that will enable this merger to be voted on by both sets of unitholders," Steinberg said.

"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."

Dexus' funds management division executive general manager Deborah Coakley said the company prided itself on its approach to corporate governance with a track record of delivering outperformance and supporting the investment strategies of capital partners.

"We look forward to adding further value to the merged portfolio and welcoming new investors to our platform," Coakley said.

For the merger to go ahead it will need to pass the 50 per cent threshold for DWPF unitholders and 75 per cent for ADPF unitholders.

DWPF is a diversified portfolio of office, retail and industrial properties located throughout Australia, including 80 Collins St in Melbourne, 100 Mount Street and MLC Centre in North Sydney, Carillon City in Perth and The Annex on 12 Creek Street in Brisbane.

ADPF's portfolio covers the same property segments with a "comparable" overall sector allocation, including investments in assets such as Quay Quarter Tower in Sydney which is currently under construction, 309-321 Kent Street in Sydney, Westfield Warringah Mall in Brookvale, Sydney, and Westfield Booragoon in Perth.

Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

Two regional NSW LGAs sent back into lockdown

Two regional NSW LGAs sent back into lockdown

The regional New South Wales local government areas (LGAs) of Hillt...

NSW to trial home quarantine program for overseas arrivals

NSW to trial home quarantine program for overseas arrivals

175 fully-vaccinated people will take part in a home quarantine tri...

CBA faces $51m in fines after pleading guilty to 30 criminal charges

CBA faces $51m in fines after pleading guilty to 30 criminal charges

The Commonwealth Bank of Australia (ASX: CBA) went on the front foo...

City of Melbourne to consider introducing vaccine passport

City of Melbourne to consider introducing vaccine passport

City of Melbourne councillors will vote next week on the introducti...