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AMP Capital completes sale of AA Reit management rights, stake to AIMS Financial
AMP Capital has completed the sale of its 50 per cent shareholding in the management companies of AIMS AMP Capital Industrial Reit (AA Reit) to its joint venture partner, AIMS Financial Group, it said in a pre-market exchang filing on Friday.
As part of this transaction, AMP Capital is also selling (see amendment note) its 10.26 per cent stake in AA Reit to AIMS Financial, which becomes the sole owner of the management companies, with a 17.88 per cent stake in AA Reit.
Accordingly, the names of AA Reit and its management entities will be changed to remove references to “AMP Capital”:
• The Reit manager’s name will be changed from “AIMS AMP Capital Industrial Reit Management Limited” to “AIMS APAC Reit Management Limited”.
• The Reit's property manager’s name will be changed from "AIMS AMP Capital Property Management Pte Ltd” to “AIMS APAC Property Management Pte Ltd”.
• The Reit's investment manager’s name will change from “AIMS AMP Capital Industrial REIT Management Australia Pty Limited” to “AA Reit Management Australia Pty Limited”.
AMP Capital said the completion of the sale of its stake in the AA Reit units is subject to the exercise of a put option or a call option in accordance with its agreement with AIMS Financial.
George Wang, chairman and CEO of AIMS Financial Group and chairman of the manager of AA Reit, said: “A significant step has been taken to demonstrate AIMS’ commitment to AA Reit through the consolidation of its interests.
"Following completion of the share sale, we remain strongly committed to our strategy of building a resilient and high-quality portfolio. Together with our ongoing focus on active portfolio management and stable growth, AA Reit will continue to deliver consistent and sustainable returns to our unitholders.”
Following the divestment, AA Reit's manager said Nicholas Paul McGrath, who is a nominee director of AMP Capital, stepped down from his position as non-executive and non-independent director of the manager on March 28. Mr McGrath also relinquished his position as member of the manager's nominating and remuneration committee.
"In his various roles over the past decade, Nicholas has served AA Reit with dedication and a commitment to enhancing long term value for unitholders. We thank Nicholas for his contributions to AA Reit and wish him all the best for the future," Mr Wang said.
The sale was initially supposed to conclude on Feb 28, 2019, but did not occur due to a disagreement between AIMS Financial Group and AMP Capital, the Reit manager said on March 1 after requesting for a trading halt.
The trading halt was later lifted on March 4 and a new agreement was later reached by both parties, according to a bourse announcement on March 15.
The counter last traded unchanged at S$1.43 apiece on Friday at 10.17am.