AMP Capital has agreed to take up a minority stake in US-based real estate investment manager, PCCP, to diversify and further develop its global real estate exposure.
Sources told IPE Real Assets the US company offers the Sydney-based global manager a platform into direct real estate investment in the US, with the US established debt market also of “particular interest”.
The acquisition with PCCP will help AMP Capital take advantage of the myriad opportunities the US market presents, one source said.
Since 1998, PCCP has provided commercial real estate debt and equity capital for middle-market real estate investments throughout the US.
PCCP manages real estate equity along with debt closed-ended funds and separately-managed accounts.
It counts major US public pension plans, commercial banks, insurance companies and leading international investors among its client base.
AMP Capital’s CEO, Adam Tindall, said: AMP Capital could see a strong opportunity to match PCCP’s US real estate expertise with the global reach of AMP’s distribution network, particularly in Asia.
“There will be further opportunities to build on the partnership through our client relationships in other geographies and our complementary capabilities,” he said in a statement today.
“The investment in PCCP is in line with our strategy to leverage the strengths of our real assets capabilities in international markets.”
He added: “Our real estate equity business is well-established in Australia and New Zealand, and this investment will diversify our business by both geography and capability especially through PCCP’s real estate debt expertise.”
“The US is the world’s largest and deepest real estate market and presents the most compelling opportunity for AMP Capital to fast-track development of a global real estate platform,” said Carmel Hourigan, AMP Capital’s global head of real estate.
She said PCCP is a strong strategic and cultural fit with AMP Capital.
Since its inception, PCCP, which had US$6.4bn under management as of September 30, has raised, invested and managed over $15bn of institutional capital. It continues to pursue investment opportunities with proven operators.