The bruising result is a blow for Dexus chief executive Darren Steinberg who has worked hard to keep investors on the platform. General counsel Brett Cameron said on Monday the final deal with AMP will now equate to about $325 million, rather than the maximum $550 million, if the remaining $20.2 billion in funds stick with the platform.

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“In addition, Dexus will no longer acquire Collimate’s committed co-investment stakes in AWOF totalling circa $270 million,” Cameron said.

Dexus is focused on completing the transaction, he said.

A major plank of George’s turnaround strategy for AMP was to de-merge Collimate, formerly known as AMP Capital, and re-focus AMP’s attention on retail wealth management.

George denied the Collimate deal was undermined by the legacy of AMP’s handling of the Boe Pahari sexual harassment case.

“I’ve spoken to a lot of investors over the last months and they’ve given me feedback about where we needed to be better. I think it’d be simplifying it to bring it down to one particular thing,” she said.

Macquarie analysts said in a note on Tuesday that Mirvac’s will have “minimal short-term impact” for Dexus.

But it was “strategically significant” given it may hamper Dexus’ ability to grow its office funds under management using its own development pipeline to seed new assets and boost the fund’s size and its management fees, they said.

The same analysts said Mirvac’s success in snaring the fund will aid its development pipeline.

“As a result of this transaction, AWOF could invest alongside Mirvac in key future office developments such as 55 Pitt Street, Sydney and 383 La Trobe Street, Melbourne,” the analysts said. Adding, any such deals will boost investor confidence in Mirvac’s pipeline.

Shares in Mirvac and Dexus fell marginally, in line with the rest of the sharemarket.

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