AMP Capital on buying spree

Diversified wealth manager AMP (ASX: AMP) manages over $130 billion in its AMP Capital division. Since the start of July, AMP Capital has spent over $800 million on behalf of investors in funds it manages.

The first transaction was by the AMP Capital Wholesale Office Fund which bought a 50% interest in 200 George Street, Sydney. The property was purchased from property developer and manager Mirvac Group (ASX: MGR) for $317 million. The George Street property, once completed is described as a “premium grade, 37 storey office tower which has been substantially pre-let to Ernst & Young for a term of 10 years from completion.”

The second announced transaction by AMP Capital is an agreement by acquire 42% of New Zealand’s second largest electricity and gas distribution company, Powerco. With a purchase price of NZ$525 million for the 42% stake, the investment was described as having “been made on behalf of a number of AMP Capital clients and managed funds, including a significant investment by the AMP Capital Infrastructure Equity Fund (IEF) and the AMP Capital Core Infrastructure Fund (CIF).”

Electricity assets, both in Australia and New Zealand, have certainly been popular with investors recently. NZ-based Mighty River Power (ASX: MYT) was floated earlier this year, while the New South Wales government is in the process of selling the state’s remaining power assets, with Origin Energy (ASX: ORG) recently snapping up Eraring Energy from the government.

Foolish takeaway

The above investments in property, infrastructure and utilities all have one thing in common – the potential to offer investors a stable earnings stream, which can in turn provide a stable dividend stream.

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Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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