AMP to reopen unlisted retail property fund for first time since GFC

AMP Capital plans to reopen to investors the $760 million Wholesale Australian Property Fund, one of the many property and mortgage funds that have remained frozen following the GFC.

The fund manager took over as responsible entity of the retail property fund in November last year from previous manager AXA Australia.

AXA Australia froze the fund in November 2008.

AMP Capital has agreed to a planned asset sales program to increase liquidity in the fund.

Its most valuable asset is the Casula Mall Shopping Centre in the outer south west of Sydney, valued at $112 million, and the Bond Store One parking garage in The Rocks, valued at $72 million.

AMP Capital head of property funds management Chris Judd says the fund has delivered an average return of 9.25% over 27 years.

“We are excited we are in a position to re-open the fund,” he says.

“Property fundamentals remain steady and as we have seen before, direct property as an asset class performs well during uncertain economic times.”

“The fund will retain a strong income focus and low risk orientation. It will continue to invest in quality direct property assets and, as always diversification remains a key component.”

“We expect the fund will continue as an open ended fund with the aim of delivering reliable income and long term capital growth to investors,” he says.

The fund has a portfolio of 17 retail, commercial and industrial properties in Australian and New Zealand.

The fund delivered shareholders a total return of 7.5% for the year to October 2011.