Speculation is mounting that AMP is selling only the infrastructure funds management component of its AMP Capital business to Ares Management.
It leaves the Australian listed financial group with the real estate platform within AMP Capital.
Sources say that key members of AMP Capital’s infrastructure team have been eager for the business to be under the control of Ares, which counts former Australian and New Zealand Credit Suisse boss John Knox as its regional chairman.
However, the understanding is that the real estate platform within AMP Capital will be retained for now, based on concern over whether some of its key investors would see the US-based group as the best party to take the reins.
Already, some superannuation funds, including Sunsuper, have offered their real estate investment mandates elsewhere.
UniSuper is also expected to find another manager for its real estate investments that are currently overseen by AMP.
It comes at a time of talk that a sale by AMP of AMP Capital to Ares is close, but that only part of the business will be offloaded.
One possibility is that AMP retains about 20 per cent of AMP Capital’s infrastructure operations, say sources.
A controlling stake would to enable the global asset manager Ares to add infrastructure to its global platform.
Following the departure of key staff out of AMP Capital, including real estate boss Carmel Hourigan, the understanding is that other key executives have been offered financial incentives to stay at the business, which would be paid out around April.
AMP Capital manages $25.9bn worth of infrastructure and real estate worth $28.2bn.
The move by Ares comes after it bid last year for the entire AMP business, putting forward a $6.4bn indicative offer.
However, after undertaking due diligence, it abandoned the takeover plans for the entire company and focused solely on AMP Capital.
Dexus Property Group has separately put forward a proposal to merge its Dexus Wholesale Property Fund with the AMP Capital Diversified Property Fund (ADPF) and an agreed deal on this is expected to be announced as early as next week.
The ADPF includes investments in buildings such as Sydney’s Quay Quarter office and retail complex at Circular Quay and the shopping malls Macquarie Centre in Sydney’s north and Pacific Fair on the Gold Coast.
Its properties are understood to be worth at least $4.5bn.
The Dexus proposal is understood to have been earlier encouraged and welcomed by many of the existing investors within the AMP Diversified Property Fund, many of which are the same that invest in the Dexus-controlled DWPF.
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