AMP Faces Twin Legal Challenges Over Property and Superannuation Deals

AMP is facing two major legal battles, one over a disputed property sale involving the Macquarie Centre and another over allegedly excessive insurance fees charged within its superannuation funds. These parallel cases are raising concerns about AMP’s past conduct and financial exposure.

The financial services firm has been under sustained pressure since selling Collimate Capital, AMP Capital’s real estate and infrastructure arm, to Dexus in 2022. That transaction led to several complications, including the loss of a $7 billion office fund to Mirvac and ownership issues relating to Melbourne Airport. A new dispute has now emerged over the forced $830 million sale of a 50% stake in Sydney’s Macquarie Centre, which had been controlled by a fund managed by AMP.

Superannuation giants Cbus and UniSuper, which co-owned the Macquarie Centre, challenged the transfer of the fund’s management to Dexus. They relied on a clause in their co-ownership agreement and the courts ruled in their favour. As a result, AMP was required to sell the half stake back to them. Now Dexus, which manages the fund, is suing AMP in the NSW Supreme Court. Dexus argues that it is entitled to indemnities promised by AMP when the original transaction occurred. It is seeking reimbursement for ongoing losses tied to the deal, particularly since shopping centre values have risen after the stake’s value was frozen in 2023.

If Dexus is successful, it could recover part of the value that has been regained since the sale. Alongside this case, Dexus is also contesting the forced sale of its 27.3% interest in airport operator APAC. It has filed a separate legal motion to stop the sale and protect the value of its investment.

In a separate development, AMP is facing a class action filed in the Federal Court in Victoria by Shine Lawyers. The lawsuit alleges that AMP and its related companies charged superannuation members excessive premiums on life, disability and income protection insurance policies. These charges allegedly occurred between June 2019 and April 2024. The legal action contends that AMP trustees did not act in the best interests of members and that overpriced policies may have reduced retirement savings for hundreds of thousands of Australians.

Members of the affected superannuation funds are being encouraged to register for the class action, as many may not be aware of the impact on their retirement balances. The aim is to recover compensation and hold AMP accountable for its actions.

Together, these legal proceedings pose a serious threat to AMP’s financial position and public reputation at a time when both investor trust and regulatory scrutiny are already high.

Source: The Australian, Financial Standard, Capital Brief, ShareCafe, Listcorp