AMP is expected to face heavy scrutiny on Thursday when it reports its half year results, with its new boss, Alexis George, having taken the reins just this month.
Ms George, the former deputy CEO at ANZ, has stepped into the job as AMP continues to face challenges on various fronts.
Losses of key staff have been among its troubles, as has the underperformance of its wealth management arm.
But one of its more public battles playing out is that for its prized $7bn office fund within its AMP Capital funds management division.
Investors in the AMP Capital Wholesale Office Fund have been weighing a move to replace AMP as manager and advisory firm Jarden is overseeing a process to determine whether another real estate group is best placed as the fund’s manager.
In a process, Stockland, Dexus GPT, Mirvac and Charter Hall were all short-listed as possible candidates. However, DataRoom understands that the fund’s responsible entity is set to narrow down the list of candidates even further with a second shortlist soon to be released after bids were earlier received by the five selected candidates.
AMP is believed to be putting up a strong fight to retain the fund. A loss of AWOF from its control could derail plans for a demerger of AMP Capital, which also manages infrastructure as well as real estate collectively worth about $190bn.
AMP last month sold AMP Capital’s Global Equities and Fixed Income business to Macquarie in a deal that valued the division at $185m.
Already, AMP Capital has lost control of the AMP Capital Diversified Property Fund to Dexus, which won the support of investors to become its new manager.
One of the challenges for AMP Capital’s real estate arm has been the departure of dozens of staff, which has unnerved some investors.
Enticements from the groups hoping to win control of the portfolio are lower fees and management expertise.
On offer is the opportunity to manage three prized office assets in AWOF: a stake in the Quay Quarter complex at Circular Quay, the 200 George Street office building and the office complex at Sydney’s Angel Place.
Major investors in the fund include UniSuper, Victorian Funds Management Corporation and Treasury Corp.
The trustee of AWOF this year set up an advisory committee to advise on options.
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