Not for release or distribution in the US
AMP Capital has agreed to sell its 50 per cent shareholding in the management companies of Singapore-listed AIMS AMP Capital Industrial REIT (AA REIT) to its joint venture partner, AIMS Financial Group, for an undisclosed amount. As part of this transaction, AMP Capital is also selling its 10.26 per cent principal stake in AA REIT to AIMS Financial Group.
The transaction follows the successful conclusion of AMP Capital’s strategic review into its investment in AA REIT announced in March this year. Following this transaction, AIMS Financial Group will become the sole owner of the management companies and hold a 17.88 per cent stake in AA REIT1.
AMP Capital Global Head of Real Estate Carmel Hourigan said the transaction was beneficial for all parties involved.
“We are pleased to enter into this agreement with our long-standing partner, AIMS Financial Group, who will become the sole owner of the management platform and provide AA REIT with long-term certainty and continued management oversight.
“AIMS AMP Capital Industrial REIT has delivered strong returns for unitholders over the last nine years, including AMP Capital, and we believe that AA REIT will continue to deliver for unitholders under the stewardship of AIMS moving forward.
“At AMP Capital, we are focused on leveraging the strengths of our real assets capabilities in international markets. As the world’s largest and deepest real estate market, the US presents the most compelling opportunity for us to fast track the development of our global real estate platform.
“Our investment in US-based real estate investment manager PCCP late last year is a key partnership for us, matching AMP Capital’s extensive global distribution network with PCCP’s investment capabilities, particularly US real estate debt and equity,” Ms Hourigan said.
Chairman and CEO of AIMS Financial Group Mr George Wang said: “AIMS has enjoyed a successful partnership with AMP Capital over the last nine years, and we now look forward to this next chapter in the evolution of AA REIT. Our footprint across Asia Pacific and extensive track record in managing real estate investments strongly positions AIMS to ensure AA REIT continues to deliver stable and sustainable long-term returns to Unitholders.”
Completion of the sale of AMP Capital’s shareholding in the management companies is expected to occur in December 2018, subject to conditions being met2. Following this, the sale of AMP Capital’s principal stake in AA REIT is expected to complete within six months.
1 AIMS Financial Group’s direct and deemed holdings in AA REIT.
2 Completion may occur at a later date following satisfaction of the conditions, but no later than 29 March 2019.
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This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.