Welcome to AIMS Financial Group

AMP Capital Investors buys strategic stake in Singapore REIT

Edited By: Florence Chong
Source: The Australian

AMP Capital will acquire a 50 per cent in the management company of the MacarthurCook Industrial REIT (MI-REIT) and a 19.2 per cent stake in the trust itself.

Under the deal, AMP would inject four buildings worth about $S70m into the trust, the smallest of the listed industrial trusts in Singapore and which owned assets, valued at $S4940m ($389m).

The Singapore trust did a $S62m placement yesterday to pay down its debt. AMP Capital underwrote $S22m of the placement and would also participate in a planned 2-for-1 rights issue to raise a further $S155.1m.

AIMS took over the Singapore trust along with other listed trusts when it acquired the Melbourne-based MacarthurCook Funds Management company earlier this year.

AMP Capital Investors Head of Asian Property Simon Vinson said Asia was part of the group's key targeted growth strategy.

"This transaction allows us to further our property investment ambitions and build a strong platform in Singapore from which we can continue to develop within the region," he said.

Mr Vinson said the deal proved an "excellent opportunity" for AMP Capital to enter the Singapore REIT market, the largest in Asia after Australia and Japan.

Investors had been operating in Singapore since 2006 and had assembled a portfolio of industrial assets, valued at around $S300m.

It made a failed attempt to take over MacarthurCook Funds Management Business last year.

At the time, industry sources said the intention was to back its industrial assets into the MacarthurCook's Singapore listed trust.

AIMS Financial Group, controlled by George Wang, successfully took over MacarthurCook this year.