Dexus’s AMP Capital Acquisition ‘Imminent’

The controversial buyout of AMP Capital’s property and local infrastructure funds is close to being finalised, according to Dexus chief executive Darren Steinberg.

Speaking at the Dexus annual meeting, Steinberg said the acquisition completion was “expected shortly”.

“Over the past quarter, we have been working with AMP and third-party stakeholders to achieve the conditions precedent required to finalise the acquisition of the AMP Capital platform,” Steinberg said.

“We now expect circa $18 billion of funds to transfer across from the AMP Capital platform.

“The earn out amount payable by Dexus has reduced to a maximum of $25 million and will be finally assessed nine months post completion. 

“Our next phase of growth will be underpinned by the AMP Capital transaction, which will position Dexus as a leading real asset manager.”

Steinberg said the Collimate deal would expand Dexus’s product offering in infrastructure and retail platforms. 

▲ Dexus chief executive Darren Steinberg says the asset manager has performed strongly in the face of global economic headwinds.

Following the transaction Dexus’s funds under management will be boosted to about $63 billion across real estate and infrastructure assets.

“In this challenging environment, we continue to deliver on our strategic objectives and are focused on integrating the AMP Capital platform,” he said.

Dexus chairman Richard Sheppard said security prices across the A-REIT sector had “declined significantly” since April 2022, due to global economic factors, “in particular the sharp rise in interest rates that we have experienced over the same time period”. 

“Dexus delivered a total security holder return in line with A-REIT 200 Index for the 12 months to June 30 and continued to outperform the index over the 10-year time period.”

Sheppard said Dexus had sold “slightly more” than it had acquired, and redeployed capital across a range of sectors. 

“Our portfolio of city-shaping projects is the cornerstone of the development pipeline, which has grown to over $17 billion,” Sheppard said.

“We see development as a key driver of growth and contributor to long-term returns, with a number of these projects progressed.”

Sheppard said the key projects in the development pipeline included Waterfront Brisbane, Central Place Sydney, Atlassian Central, the Pitt and Bridge precinct and 60 Collins Street.