AMP Capital sells Property For Industry management contract to DPF Management

Friday 30th September 2011

AMP Capital Investors agreed to sell the management contract for Property For Industry to Auckland-based DPF Management

Terms for the deal weren’t immediately disclosed. PFI owns 50 industrial properties valued at $351 million, AMP Capital said in a statement. The transaction settles on Jan. 20, 2012.

AMP Capital reaped $933,000 in management fees in PFI’s first half, down from $962,000 a year earlier. PFI’s first-half revenue fell 2.5% to $15.6 million and profit was little changed at $8.3 million

The Wellington-based fund manager said it accepted an unsolicited offer from DPF after gaining the approval on PFI’s two independent directors. No mention was made of an independent assessment.

DPF is an Auckland-based property company with six shareholder groups, according to the Companies Office. Greg Reidy, director of the DPF unit that will hold the management contract, PFIM, wasn’t immediately available to comment.

“The new management group intends to continue with a business-as-usual approach,” comments attributed to him in the media release say.

Shares of PFI rose 0.9% to $1.17, valuing the firm at $256 million. They have slipped about 14% in the past five years.

BusinessDesk.co.nz

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