Dexus takes Collimate Capital business

Mike Taylor

Managing Editor/Publisher, Financial Newswire

27 April 2022

Dexus has announced its acquisition of AMP’s Collimate Capital real estate and domestic infrastructure equity business.

Dexus announced to the Australian Securities Exchange (ASX) that the transaction involved a $250 million upfront cash payment and earn out consideration of up to $300 million, subject to a range of factors including successful transition of assets under management.

It said that, in addition, Dexus would offer to acquire co-investment stakes in the platform for total cash consideration of up to approximately $450 million, subject to discussions with investors, pre-emptive rights processes and relevant consents.

The ASX announcement said Dexus plans to hold consultation sessions with Collimate investors over the coming weeks to discuss the merits of the transaction and determine the Collimate AUM to be transferred to the Dexus platform as part of the transaction.

It said Collimate holds co-investment stakes in the platform funds totalling around $180 million, which Dexus will offer to acquire as part of the transaction.

In addition, Collimate had provided a commitment to acquire a further circa $270 million of units in AMP Capital’s Wholesale Office Fund which Dexus will also offer to acquire as part of the transaction.