AMP Capital has today announced it has entered into an agreement to purchase a minority stake in US-based real estate investment manager PCCP.
PCCP, headquartered in Los Angeles, provides commercial real estate debt and equity capital for middle-market real estate investments throughout the US. PCCP’s investment products include real estate equity and debt closed-ended funds and separately-managed accounts. PCCP’s top-tier US client base includes major US public pension plans, commercial banks and insurance companies as well as leading international investors.
The investment enables AMP Capital to partner with PCCP, matching AMP Capital’s extensive global distribution network and partnerships, with PCCP’s investment capabilities, particularly US real estate debt and equity.
The minority investment, which is commercial in confidence, will be earnings accretive to AMP Capital immediately.
AMP Capital CEO Adam Tindall said: “The investment in PCCP is in line with our strategy to leverage the strengths of our real assets capabilities in international markets. 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.
"We see a strong opportunity to match PCCP’s US real estate expertise with the global reach of our distribution network particularly in Asia" - Adam Tindall
“We see a strong opportunity to match PCCP’s US real estate expertise with the global reach of our distribution network particularly in Asia. There will be further opportunities to build on our partnership through our client relationships in other geographies and our complementary capabilities.”
AMP Capital Global Head of Real Estate Carmel Hourigan added: “The US is the world’s largest and deepest real estate market and presents the most compelling opportunity for AMP Capital to fast track the development of a global real estate platform. PCCP is a strong strategic and cultural fit with AMP Capital and we look forward to a successful partnership.”