Mirvac to manage AWOF
Mirvac Group (“Mirvac”) [ASX: MGR] has been notified that the requisite majority of unitholders of AMP Capital Wholesale Office Fund (“AWOF”) has approved a resolution to replace the current trustee, AMP Capital Investors Limited ("AMPCI"), with Mirvac Funds Management Australia Limited (“Mirvac Trustee”).
AWOF is comprised of 11 prime grade assets concentrated in the Sydney and Melbourne markets. The portfolio is underpinned by high quality modern assets such as Quay Quarter Tower, Sydney, along with iconic assets such as Collins Place, Melbourne, and features a WALE of 5.5 Years, an occupancy rate of 92.5% (by income) and NABERS Energy Rating of 5.3 Stars1.
It is expected that the Mirvac Trustee will become trustee of AWOF in mid-October 2022 (“Effective Date”). From the Effective Date, Mirvac will be the investment manager and property manager (in respect of AWOF’s wholly owned assets) of AWOF.
The required majority of AWOF unitholders did not vote in favour of the constitutional amendments relating to the governance of AWOF and to give effect to the liquidity facility (described below). It is, however, expected that the Mirvac Trustee will propose equivalent constitutional amendments at a subsequent meeting of the AWOF unitholders within 20 business days following the Effective Date. Once these constitutional changes are made, AWOF will be known as the Mirvac Wholesale Office Fund. Subject to those amendments being approved by AWOF unitholders, Mirvac will then offer AWOF a total of $500m of liquidity. It is expected that this liquidity will be utilised within six months of the Effective Date.
As a result of the transaction, Mirvac’s third-party capital under management will grow by ~76%, increasing to ~$18.1bn2.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said “We are pleased to have been entrusted by AWOF unitholders with the management of one of Australia’s leading unlisted office funds. The addition of the $7.7bn fund is an acceleration of Mirvac’s long stated strategy to grow our third-party funds under management with aligned capital partners, and further enhances our position as a top tier manager of prime office assets in Australia.
“We are pleased to offer AWOF unitholders reduced fees, a standalone trustee with a majority independent board and access to Mirvac’s market-leading, integrated asset creation and curation capabilities and platform including our $9.2bn3 office and mixed use development pipeline. Today’s vote by AWOF unitholders demonstrates their faith in Mirvac as a stable platform with a clear focus on governance and a long track record of delivering unitholder value.
“AWOF’s modern, high-quality portfolio, recently enhanced by the completion of Quay Quarter, is strongly aligned with Mirvac’s investment strategy and existing portfolio. We look forward to working with unitholders to continue to enhance the performance of AWOF over time.”
1 AWOF Quarterly Report for 31 March 2022.
2 Mirvac’s third-party funds under management as at 31 December 2021: $10.3bn.
3 As at 31 December 2021.
Mirvac acknowledges Aboriginal and Torres Strait Islander peoples as the Traditional Owners of the lands and waters of Australia, and we offer our respect to their Elders past and present.
Artwork: ‘Reimagining Country’, created by Riki Salam (Mualgal, Kaurareg, Kuku Yalanji) of We are 27 Creative.