AMP Capital has beaten off two contenders to retain management of the A$7bn (€4.5bn) AMP Capital Wholesale Office Fund (AWOF).
The future of AWOF has been in question since May following talks of a takeover or merger with a rival vehicle first surfaced.
AMP Capital retained an investment bank and formed an independent advisory committee (IAC) to work with the fund’s trustee to navigate the process.
The IAC chose AMP Capital in preference to GPT Group and Mirvac, which were on a shortlist to clinch the trust which owns some of Australia’s top premium office buildings, including Quay Quarters in Sydney’s Circular Quay.
The IAC recommended that AWOF become part of PrivatemarketsCo, a platform managing real estate and infrastructure investments which AMP Capital plans to spin off next year.
“After a comprehensive process, the trustee of AWOF endorsed the IAC’s recommendation that it was in the best interests of AWOF investors as a whole for PrivatemarketsCo to continue as trustee and manager of the fund,” said a spokesman for the AWOF trustee board.
IPE Real Assets understands that a unitholders’ forum is scheduled for Friday, giving investors the first opportunity to raise questions or comment on the decision.
Shawn Johnson, AMP Capital chief executive officer, said: “We acknowledge and welcome the trustee board’s decision and thank the directors and IAC for their work.
“AMP Capital remains committed to managing AWOF, which is leading the MSCI/Mercer office index over one-, two- and three- years.”
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