AMP and Dexus are on the cusp of a deal that will allow the diversified property player to take a significant chunk of the wealth manager’s prized $44 billion funds management arm and boost Dexus’ status in the listed real estate sector to third-largest fund management platform.

Sources close to the transaction said AMP and Dexus were expected to finalise arrangements on Wednesday after several days of “dotting i’s and crossing t’s” on a sale and purchase agreement.

AMP, led by chief executive Alexis George, ditched a long-running plan to spin off its private markets arm Collimate Capital, and after approaches from interested buyers, investigated selling the business. It confirmed a week ago it was in discussions with Dexus about a potential deal.

Collimate, previously known as AMP Capital, has $44 billion in infrastructure and real estate assets, but Dexus is angling to secure its $31 billion local property and infrastructure platform.

Another listed property player, Mirvac, is reported to have made a late run at gaining management control of the AMP Capital Wholesale Office Fund, which is part of the Collimate platform. A Mirvac spokeswoman declined to comment.

Tribeca Investment Partners senior portfolio manager Jun Bei Liu said Mirvac entering the running for Collimate was good news for AMP because it could push up the price. “Obviously, the more bidders the better because it means potentially higher prices. And very high-quality bidders as well.”

Liu said while both parties were high quality, she had a slight preference for Dexus. “It’s just a better-run business; they’re both run well but Dexus is No.1. Then there are synergies that can be realised.”

Tribeca has a small shareholding in AMP and Liu said investors had been kept well informed throughout the process.

An acquisition of the management rights by Dexus will bolster its funds under management from $27 billion to $57 billion, giving it the third largest platform behind market behemoths Charter Hall ($61 billion) and Goodman ($64 billion).