AMP sued by Dexus over property disposal
AMP has announced to the ASX that it is being sued by property fund manager Dexus regarding the sale of its real estate and domestic infrastructure equity business.
Dexus acquired AMP’s real estate and domestic infrastructure equity business in 2023.
However, Dexus has now filed a proceeding in the Supreme Court of NSW against Collimate Capital and AMP Group regarding the sale value of a property asset.
Collimate Capital was AMP’s international infrastructure equity business which was sold to DigitalBridge in February 2023.
“The proceeding arises out of the dispute between a Dexus entity and Macquarie Retail Pty Limited regarding the disposal of the Macquarie Shopping Centre, following the sale of the former AMP Capital business, and relates to the sale value of that property,” AMP said in a statement.
AMP said it will defend the proceeding.
The sale of the business to Dexus was initially delayed in January 2023 due to issues around the transfer of AMP’s ownership interest in China Life AMP Asset Management (CLAMP). If the conditions were not met, the maximum total consideration payable by Dexus would be reduced to $225 million and the potential earn-out amount of $26 million would be forfeited.
It was then subsequently delayed again in March 2023 as AMP continued working on securing the outstanding China regulatory approval before being eventually completed in November 2023.
In a second matter, a class action has been filed against NM Superannuation Proprietary in the Federal Court of Victoria and against AMP Superannuation (ASL) and Resolution Life Australasia.
“The proceeding relates to allegations of higher premium payments by certain members of AMP’s superannuation funds for life insurance (death only cover, total and permanent disablement cover and income protection cover) during the period 2019 to 2024.”
NM Super and ASL will defend the proceeding.
AUTHOR
Laura Dew
Recommended for you
Outflows have doubled in the property and infrastructure space to $1.3 billion with advisers instead favouring private markets as Morningstar data finds active property funds are struggling to outperform.
Fund manager HMC Capital is seeking to expand fundraising for its private equity vehicle into wholesale platforms now that it has achieved a three-year track record, while scrapping plans for a second fund.
Former Platinum co-founder James Simpson will take up a non-executive role at Income Asset Management as two directors retire.
Bell Financial Group has announced a 44 per cent decline in half-year net profit after tax but record funds under advice as it transitions into a diverse wealth management business.
