Dexus and AMP agree binding documentation for Collimate Capital acquisition

20 March 2023

Dexus confirmed its agreement to acquire Collimate Capital’s real estate and domestic infrastructure equity business from AMP Limited in a new form of transaction which overcomes previous issues.

Dexus and AMP have finalised binding documentation for an alternative Transaction structure under a two-stage completion process, with First Completion on 24 March 2023. The alternative transaction structure allows First Completion of the Transaction without satisfaction of the condition precedent relating to the transfer of AMP’s ownership interest in China Life AMP Asset Management (“CLAMP”) out of entities being acquired by Dexus under the Transaction.

Under the alternative Transaction structure, First Completion enables integration of the Collimate Capital business into the Dexus platform. Dexus will be entitled to the economics from First Completion. Final Completion remains dependent on the ownership of CLAMP being transferred out of the relevant entities that Dexus has agreed to purchase.

The maximum total consideration payable by Dexus has been agreed as a base purchase price of $225 million, in accordance with the update provided to ASX on 9 January 2023. In addition, payment of $50 million of the base purchase price will be deferred until Final Completion. If Final Completion does not occur by 30 September 2024, this deferred amount would be forfeited by AMP.