Precinct Properties New Zealand is moving its management in-house with the acquisition of management rights from AMP Capital and Abu Dhabi Investment Authority (ADIA) for NZ$215m (β¬127m).
AMP Capital and a subsidiary of ADIA set up AMP Haumi Management Limited (AHML) to manage Precinct following its listing in 1997 and through its corporatisation in 2010.
Precinctβs acquisition of AHML will allow the $1.5bn New Zealand-listed real estate investment trust to internalise management.
AMP Capital said that the New Zealand business had increasingly become a standalone business and internalisation represented a βnatural evolutionβ for Precinct Properties.
Craig Stobo, independent chairman of Precinct Properties New Zealand, said AHML had helped create significant shareholder value for Precinct shareholders as it transformed the quality of its business over the past 10 years, he said.
βThe shareholders of AHML have a global perspective of real estate markets, and their influence is evident in the successful completion of over NZ$1.5bn in developments in that time.β
The management rights of Precinct were excluded from the proposed deal between AMP and Ares Management Corporation for AMP Capitalβs private markets businesses.
βAMP and Ares continue to work towards a potential transaction, and Ares has expressed interest in acquiring 100 per cent of the private markets businesses,β AMP said.
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