(Bloomberg) — Follow us at @BloombergAU on Twitter and BloombergAsia on Facebook for the latest news and analysis.

Most Read from Bloomberg

Real estate firm Dexus has agreed to acquire AMP Ltd.’s Australian real estate and infrastructure business for about A$1 billion ($713 million) in cash.

The Sydney-based real estate investment trust will pay A$250 million in cash upfront for Collimate Capital’s domestic operation, according to a statement on Wednesday, confirming an earlier Bloomberg News report. There’s an earn-out that could reach another A$300 million, subject to client retention for nine months after the deal’s completion.

Dexus will also acquire all of AMP’s sponsor stakes including existing funds and committed capital in the platform for A$450 million, subject to discussions with fund investors and other conditions. The transaction is expected to complete in the first half of the next financial year.

Sydney-based AMP told investors earlier this year it had entertained inbound inquiries about a potential deal for its private markets investment unit, which it had been planning to spin off. The business has since been renamed Collimate Capital. AMP said Wednesday it remains in discussions on Collimate Capital’s international operations after receiving a number of approaches.

(Updates with official announcement throughout)

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.