AMP’s rivals have been presenting to the investors in its prized $7bn wholesale office fund in recent days in a quest to convince them to dump the financial giant as its manager.
DataRoom understands that Australian listed real estate trusts GPT and Mirvac made presentations to investors last week, as did the fund’s current manager AMP Capital.
Investors are now considering the pitches before they vote on whether to replace AMP Capital with GPT or Mirvac.
GPT is selling its proposal to the 30-odd investors in AWOF as a chance to be part of a bigger fund by merging it with its own wholesale office fund, GWOF.
Mirvac is more focused on keeping AWOF intact, arguing it is already of scale, and it is offering the opportunity for new development opportunities to fund growth.
AMP Capital is understood to be offering to lower its fees in an effort to keep investors on board.
Environmental, social and governance factors are also being played up in the pitches by AMP’s rivals, given that some consider AMP to have had a poor corporate governance track record in the past.
The suitors are also talking up the merits of stability for the fund under their watch.
A change of manager needs 75 per cent investor support, but whether the trustee board of the fund will put the vote to shareholders remains unclear.
This has been a point of contention among investors who are worried about AMP Capital – which is AMP’s real estate and infrastructure fund manager – remaining at the helm following the loss of top staff and a looming demerger, which could see AMP Capital ultimately acquired by another party.
AMP Capital has recently hired Macquarie Capital in a big push to ensure a valuable real estate fund does not slip from its control for the second time.
Already investors in the $5bn AMP Capital Diversified Property Fund have voted to replace its manager with Dexus Property.
If AMP Capital loses control of AWOF it could derail plans for AMP’s demerger plans.
Still, the understanding is that pressure is building for a new manager to be sought.
If AWOF’s board refuses to call a vote, there is talk that investors may call an extraordinary general meeting to dump AMP Capital as manager or withdraw their capital from AWOF and vote to wind up the fund.
Adviser Jarden and an independent advisory board recommended to AWOF’s trustee board in the past fortnight that shareholders be given a vote.
The understanding is that the trustee board did not accept the recommendation, prompting the independent advisory board to resign.
AWOF consists of prized office assets including a stake in the Quay Quarter complex at Circular Quay, the office complex at Sydney’s Angel Place and its Collins Place office development in Melbourne.
AMP includes a bank, wealth management unit and the AMP Capital funds management arm.
AMP shares closed at $1.05.
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