Dexus has confirmed that the completion of their acquisition of Collimate Capital domestic infrastructure equity and real estate business to Dexus is on track for completion in 2H 2022.
The deal, announced back in April, spans $27.9bn of assets, split between $18.2bn of real estate and $97.bn of infrastructure. These numbers include the around $8bn of assets in the AMP Capital Wholesale Office Fund (AWOF), the fate of which is to be decided by a unitholder meeting on the 15th July.
Dexus has confirmed that the outcome of the unitholder vote on AWOF will not impact the expected completion of the sale which is forecast for the end of September 2022.
AMP has indicated that if Collimate was not successful in retaining AWOF, this would reduce the final earnout amount payable under the sale deal with Dexus by about 50 per cent. Dexus paid an initial $250m cash and the earnout is up to $300m.
As required by the sale agreements, AMP continues to work closely with Dexus to ensure the smooth transition of the businesses, including the transfer of applicable legal entities, business assets, systems and employees, which will provide stability for clients, employees and partners.
AMP and Dexus are however hopeful that unitholders will support their proposal to retain the management of AWOF. AMP believes it and Dexus have put forward a compelling proposal for clients, and that the combined platform of AMP Capital and Dexus represents the best outcome for AWOF and its unitholders, bringing the combined experience of both groups together to deliver a superior outcome for investors.
AMP, Dexus and Mirvac will be on the road over the next 2 weeks ramping up support for their proposals ahead of the unitholder meeting. A number of hurdles lie in their paths and whilst fees are always a key element, the access to quality people and clear strategies cannot be underestimated.
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