The ASX-listed AMP, parent of AMP Capital, plans to inject A$800m (€510.6m) into its AMP Diversified Property Fund (ADPF) to thwart a merger proposal from an unlisted Dexus fund.
IPE Real Assets understands that the capital would be used to purchase two retail assets, currently held in ADPF. AMP also would take an equity stake in ADPF.
The fund co-owns a number of retail assets with other AMP funds, notably its shopping centre fund. These include super-regional malls such as the Pacific Fair Shopping Centre on Queensland’s Gold Coast and Westfield malls in Perth and Macquarie Centre in Sydney.
A source said the capital injection would help resolve a liquidity issue facing the fund as a result of redemption requests totalling more than A$2bn.
The latest AMP move is aimed at countering a merger proposal from the Dexus Diversified Property Fund (DWPF). ADPF’s independent board this week recommended the proposal to its unitholders.
AMP is in the middle of working out a joint venture agreement with US-based Ares Management, which is acquiring a 60% stake in AMP’s private markets business, including its real estate business.
AMP Capital, which announced its alternative proposal to ADPF yesterday, said AMP had kept Ares informed of the proposal to ADPF.
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