AMP Capital to retain management of real estate fund

AMP Limited announced on Monday (22 November) that the trustee board for AMP Capital Wholesale Office Fund (AWOF) has decided that it is in the best interests of unitholders as a whole for AMP Capital to continue as trustee and manager of the fund.

The trustee board made the decision following a “thorough assessment” of management proposals received from AMP Capital and two short-listed competitors.

“We acknowledge and welcome the trustee board’s decision and thank the directors and IAC for their work. AMP Capital remains committed to managing AWOF, which is leading the MSCI/Mercer office index over one, two- and three-years,” said Shawn Johnson, AMP Capital chief executive.

“This decision recognises the commitment of our real estate team, who deliver every day for AWOF unitholders, and follows a comprehensive and detailed review against our peers.”

AMP is expected to implement several changes, including to the governance of the fund, which foresees “increased manager alignment” and “reduced fee arrangements”.  

AMP Capital’s private markets business is set for a demerger in the first half of 2022. AMP Limited estimates its total capital support to the real estate business ahead of demerger will be up to $500 million.