Macquarie Centre dispute drags on for AMP

The company is fighting claims from heavyweight property company Dexus and from class action lawyers.

The forced sale of a stake in the Macquarie Centre is the heart of legal claim against AMP.

Listed wealth company AMP has been hit with two separate legal actions, leaving it to defend its practices when selling life insurance on superannuation funds as the fallout from the disposal of its local real estate empire to Dexus continues to unfurl.

The real estate dispute stems back to the sale of the Collimate Capital business, which comprised AMP Capital’s local real estate and infrastructure business, to the listed Dexus in 2022.

The sale has been wracked by difficulties, with a $7bn office fund lost to Mirvac and Dexus now at risk of losing Melbourne airport from of its empire in a dispute with fellow owners of that asset.

The latest dispute relates to the forced sale of a 50 per cent interest in the sprawling Macquarie Centre in Sydney. The stake was under the control of an AMP-managed shopping centre fund, which co-owned it with two superannuation funds, Cbus and UniSuper.

But they last year won a court case, which was later upheld on appeal, that forced the sale of the half-interest to them for $830m. The disposal was ordered as the transfer of the fund’s management from AMP to Dexus was barred under their ownership agreement.

A Dexus unit is now suing in a bid to mitigate losses suffered as a result of the sale.

The property company confirmed it had lodged a claim against AMP in relation to the forced sale of the Dexus Wholesale Shopping Centre Fund’s interest in the Sydney complex.

The dispute is focused on indemnities provided by AMP at the time of the sale and the extent to which they cover the losses suffered. The stake was effectively frozen at 2023 values when the dispute broke out. But large shopping centres have risen in value since then so the Dexus action could recoup some of this value.

AMP flagged it would fight the case lodged in the NSW Supreme Court and confirmed the dispute related to the centre’s sale value. Dexus declined to comment, with a spokesman saying as the matter is before the court “it would not be appropriate to provide further commentary at this time”.

Dexus is separately fighting to stop the 27.3 per cent interest it controls in airport company APAC being sold off. Its opponents, including IFM Investors and the Future Fund, have until Friday to lodge defences against a Dexus action to halve an action against them.

The second legal case AMP faces is a fresh class action lodged by Shine Lawyers in the Federal Court in Victoria. Proceedings have also been commenced against AMP Superannuation Pty Limited, and Resolution Life Australasia Limited, with the firm filing on behalf of hundreds of thousands of Australians who were charged excessive insurance premiums in AMP superannuation funds and insured by AMP Life.

Shine alleges NM Superannuation Pty Limited and AMP Superannuation Limited — the AMP trustees — failed to act in the best interests of their members by providing them with expensive insurance policies, resulting in significant and unnecessary erosion of their retirement savings.

The class action is open to people who held life insurance, total and permanent disability insurance or salary continuance insurance through an AMP super fund between June 2019 and April 2024.

Shine is encouraging affected members to register their interest, as they may not even be aware their superannuation savings were eroded due to excessive insurance fees.

“This class action is about seeking justice and compensation for everyday Australians who trusted the AMP trustees to manage their retirement savings responsibly,” Shine’s special counsel and class actions practice leader said.