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Australia-based Dexus Funds Management has inked a revised deal to buy Collimate Capital’s real estate and domestic infrastructure equity business from AMP.

The companies have entered into a binding documentation to complete the acquisition under a two-phase process.

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First completion of the deal, which was first announced in April last year, is expected to take place on 24 March 2023.

Under the revised structure of the deal, majority of the legal entities, which include most of AMP Capital domestic assets and management rights, will be transferred to Dexus.

During first completion, AMP will receive around A$337m ($226m) from Dexus.

The payment will cover A$175m of the A$225m base purchase price for Collimate Capital.

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It will also include A$105m for sponsor investments as well as A$57m for the cash, net of the rest of the liabilities, held on Collimate Capital’s balance sheet.

Dexus will pay the remaining A$50m of the base purchase price provided AMP transfers its ownership interest in China Life AMP Asset Management Company (CLAMP) by 30 September 2024.

Once the transfer is completed, the remaining AMP Capital legal entity will join Dexus and final completion of the deal will be done.

AMP CEO Alexis George said: “Completion of the sale of the remaining AMP Capital business will mark the delivery of a key pillar of our strategy to simplify AMP.

“The sale allows AMP to have a clear focus on our go forward businesses of retail banking and wealth management in Australia and New Zealand.

“We will continue to build on the hard work of the past 12 months to position AMP to win in those markets, deliver for customers and drive value for shareholders.”