AMP Limited has agreed to sell Collimate Capital’s real estate and domestic infrastructure equity business to Australian real estate and asset management group Dexus.
Dexus said the consideration comprises a A$250 million upfront cash payment and earn out consideration of up to a$300 million.
In addition, Dexus will acquire all of AMP’s existing (A$180 million ) and committed (A$270 million) sponsor stakes in the platform for cash consideration expected to be up to approximately A$450 million, subject to discussions with fund investors, pre-emptive rights processes and applicable consents.
AMP Limited Chair, Debra Hazelton commented: “The sale of the real estate and domestic infrastructure equity business is a strong outcome for AMP shareholders and Collimate Capital stakeholders.
“As we work towards completing the transaction, a key priority for our board will be returning capital to AMP shareholders in acknowledgement of their patience as we have pursued options to maximise value for them.
“We continue our discussions on the remaining international infrastructure equity business in order to achieve the best outcomes for AMP shareholders, clients and our teams.”