AMP Capital acknowledges the outcome of the meeting of unitholders in the AMP Capital Diversified Property Fund (ADPF) today, which voted to merge the fund with the Dexus Wholesale Property Fund (DWPF).
ADPF is a diversified real estate investment fund, which was ranked the best performing fund in the MSCI/Mercer index over the two-year period to 31 March 2021. Its Responsible Entity, AMP Capital Funds Management Limited, received the unsolicited merger proposal from DWPF last year, and established an independent board committee (IBC) to assess the proposal.
AMP Capital also provided an alternative proposal for consideration by ADPF unitholders, however the IBC recommended the DWPF proposal.
Kylie O’Connor, AMP Capital’s Head of Real Estate commented: “While AMP Capital submitted a compelling alternate proposal with significant capital support, we respect our investors’ decision to seek the scale that the merged fund will provide.
“I am immensely proud of what AMP Capital has achieved with ADPF. First and foremost, we have always focused on delivering outstanding investment performance for unitholders, and ADPF’s market leading position is testament to this.
“AMP Capital has a long history of managing both single sector and diversified property funds for institutional and direct investors, as well as separate mandates, across the risk spectrum. Real Estate remains an integral part of AMP Capital’s Private Markets business, which is about to embark on a separation from AMP Limited. The team is focused on continuing to provide innovative real estate investment solutions for investors, as well as growth opportunities, as part of the newly created entity,” Ms O’Connor said.
Following the vote, AMP Capital Funds Management will cease to act as the Responsible Entity for ADPF, and a transition for unitholders will commence.
The property management for ADPF’s fully-owned industrial properties, as well as fund and support services, will be transitioned over the next few months. AMP Capital will continue to property manage assets held by ADPF that are co-owned with other AMP Capital managed funds.