Dexus makes $1.5 billion acquisition

Dexus announced the acquisition of a $1.5 billion portfolio of industrial properties alongside APN Industria REIT, continuing its strategic objective of investing in sustainable income streams as well as expanding and diversifying its funds management business.

The acquisition includes Jandakot Airport in Perth, WA, and a logistics facility leased to Australia Post in Truganina, VIC.

The transactions are expected to leverage the $12 billion giants development capabilities and aim to focus on allocating more capital to opportunities with development potential and in structures where they investing alongside third party clients.

The additions come shortly after the $123 million acquisition in Kemps Creek, NSW, which is currently undergoing due diligence.

The acquisitions boost a meaningful footprint in Western Australia and new product in the Sydney market to service the company’s growing customer base. Across the group, its industrial portfolio is expected to grow to $11.3 billion post completion of the near term developments and recent acquisitions.

The combined transactions are expected to be accretive to Dexus’s Adjusted Funds From Operations per security for FY22. The company said it will update the market regarding guidance at the HY22 result in February 2022.

Darren Steinberg, Dexus CEO said: “These are high-quality investments that will further enhance the resilience of our property portfolio. The near term development potential and scope to enhance returns by introducing third party capital make this a compelling opportunity, and one aligned with our priorities to grow our funds management business and recycle capital into high returning opportunities.”