AMP Capital retains management of jewel real estate fund

AMP Capital will remain as the manager of its Wholesale Office Fund following a prolonged review process and pressure among rival fund managers to oversee the portfolio.

The fund’s board of trustees, which is comprised purely of AMP Capital executives, said “it is in the best interests of unitholders as a whole for AMP Capital to continue as trustee and manager of the fund” in a statement on Monday.

The decision followed advice from an independent advisory committee and external legal and financial advisers that included assessing proposals from two shortlisted competitors.

The decision to retain AMP Capital will include governance changes including reduced fees and “increased manager alignment” which will extend to “alignment capital” from AMP Limited prior to the demerger of AMP Capital’s private markets business.

“AMP Limited estimates its total capital support to the real estate business ahead of demerger will be up to $500 million,” the company said.

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