Just good news all round for AMP. AMP Capital shopping fund...

Just good news all round for AMP.

AMP Capital shopping fund $517m in the red as pandemic hits


Valuations have been slashed on some of AMP’s mall assets.
Fund manager AMP Capital’s flagship $3.6bn shopping centre fund plunged to a loss of more than half billion dollars in 2020, on the back of heavy writedowns and the coronavirus crisis.
The fund, which owns stakes in landmark centres including the Macquarie Centre in Sydney and Pacific Fair on the Gold Coast, was once an industry stalwart but slashed valuations on its regional malls and also paid out investors fewer distributions.
The wholesale vehicle is one of a suite of property funds run by the AMP Capital, with the two other main funds already being eyed off by rival managers, potentially complicating a proposed joint venture deal with US manager Ares.
The $4bn AMP Capital Diversified Property Fund is subject to a merger proposal by Dexus Property Group which would combine that vehicle with its own wholesale fund.
AMP Capital’s $7bn office fund is also under assault from rival managers, as investors weigh up launching a process that could see a new group appointed to run the strongly-performing fund.
The shopping centre fund, however, was hit by the industry wide malaise in big malls, with its performance middle of the pack against similar vehicles run by rivals including Lendlease and GPT.
It slumped to a net loss after finance costs of $517.8m last financial year, a hefty dive on 2019’s $103.1m loss, blaming the COVID-19 outbreak.
“The resulting global travel restrictions, increased lockdowns in certain countries and restrictions on social gatherings are having an ongoing impact on both domestic and global economies, significantly impacting many Australian businesses and communities including certain businesses to which the group is exposed,” the fund accounts said.
Distributions to unit holders fell to $105m, down from $164.7m a year earlier.
The group had a current net asset deficiency at the end of December 2020 but refinanced shortly afterwards.
In February, its $450m syndicated bank debt facility maturing in May 2021 was refinanced. The facility limit was increased to $600m, with $300m maturing in February 2024 and $300m maturing in February 2026.