AMP chair Debra Hazelton has struck a bold plan to retain control over a $5 billion property fund, one of the crown jewels of the AMP Capital platform, and stave off its takeover by rival Dexus by cutting management fees by 75 per cent and selling off $1.8 billion in assets.

The 22-page rescue plan was delivered to AMP Capital Funds Management’s chair Ming Long last month as AMP itself raced to lock in a deal with New York’s Ares Management to take a controlling stake in AMP Capital’s $60 billion private markets business.