The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
Phil BartschWed 27 Apr 22

Dexus Inks $1bn Buyout Deal for AMP Assets Platform

Quay Quarter Tower, Sydney

The ink has finally flowed, sealing a deal worth up to $1 billion for the buy-out of AMP’s newly-branded assets management arm Collimate Capital by property behemoth Dexus. 

Its acquisition will add about $31 billion in Australian assets under management to Dexus’s portfolio and comes after weeks of speculation. 

The deal also officially puts an end to plans for a demerger of Collimate—formerly AMP Capital—as a new entity, which was scheduled to trade on the ASX by June 30.    

Under the agreement, AMP will divest Collimate’s real estate and domestic infrastructure equity business that comprises a platform of pooled funds and separately managed accounts. 

The deal includes a $250 million upfront cash payment and an earn-out consideration of up to a further $300 million, subject to retention of assets under management nine months after the transaction’s completion. 

However, it is deemed unlikely the full earn-out will be achieved given current expected loss of assets under management of circa $3 billion. 

Additionally, Dexus also will offer to acquire co-investment stakes in the platform for as much as $450 million. 

In confirming the deal, AMP chief executive Alexis George said Dexus would add significant value through its strong track record and experience in real estate and asset management. 

“In Dexus we have found a strong owner for the real estate and domestic infrastructure equity businesses,” George said. “Their depth of talent will strongly complement our specialist teams.” 

Dexus plans to retain Collimate’s key people as part of the transaction, “to continue to support the real estate business and entry into the infrastructure segment”. 

“I am excited to announce this opportunity which positions Dexus as a leading real asset manager, with new capabilities and an expanded product offering, underpinned by our best practice governance and risk management framework,” Dexus chief executive Darren Steinberg said. 

“It delivers on our strategic objectives of being a real estate partner of choice and delivering resilient income streams, while enhancing our ability to leverage the key megatrends benefiting real assets. 

“Infrastructure is a logical next step for Dexus’s funds management business, underpinned by compelling sector fundamentals and a positive growth outlook.” 

The transaction is expected to complete in the first half of 2023.

AUTHOR
Phil Bartsch
The Urban Developer - Writer
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/dexus-inks-aud1bn-buyout-deal-for-amp-assets-platform