Investment firm aims to snap up important infrastructure fund
Yet another player has emerged in the battle for AMP’s Collimate Capital unit.
Infrastructure investment manager Plenary Group is reportedly looking to take control of Collimate Capital’s Community Infrastructure Fund, according to The Australian. Plenary Group is an Australian investment business that specialises in public-private partnerships.
Plenary tried to take over the management of the find last year, but reportedly lacked investor support. But now domestic investors and Korean institutional investors, which account for more than 50% of shareholders, are reportedly taking meetings with Plenary, which is making a fresh attempt to grab the fund.
The AMP Community Infrastructure Fund invests in high-yield, brownfield, social infrastructure public-private partnership assets in Australia and New Zealand, according to The Australian. The fund operates in sectors such as education, health, justice, water, community housing and recreational facilities. It currently has 18 assets worth more than $5.8 billion.
Read next: AMP’s deal with Dexus hits a snag
AMP announced last month that it had sold Collimate Capital’s property funds management business and domestic infrastructure equity business to Dexus Property Group for $300 million, and its infrastructure business to DigitalBridge for up to $699 million. The deal would see Dexus take over the management of about $18.2 billion in real estate assets and $9.7 billion of infrastructure.
However, AMP investors have apparently demanded a meeting to vote on allowing Mirvac Group to take over an important office fund, rather than carrying out the planned switch to Dexus.
All of this puts pressure on AMP executives to hold the Collimate Capital sale together, with Dexus having the option to walk away if investors decide to take their money elsewhere, The Australian reported.
