Dexus has announced that it has entered into agreements to sell a high quality portfolio of industrial assets to the Dexus Australia Logistics Trust. The $270 million portfolio includes major industrial assets in Victoria and New South Wales.
Fund manager Dexus is growing Dexus Australian Logistics Trust (DALT) by moving its portfolio that comprises of five high quality industrial assets in Truganina, VIC and a high quality industrial business park in Botany, NSW to its trust.
Dexus set up the DALT less than two years ago with Singaporean sovereign wealth fund GIC.
For DALT, in which Dexus has an interest, this acquisition enables access to a portfolio of properties off market, while delivering on its active acquisition and development mandate.
When combined with the DALT acquisitions of two high quality assets at Greenacre, NSW and Mickleham, VIC which were announced to the Australian Securities Exchange (ASX) on 7 July 2020, this portfolio will increase the size of the Fund by circa $445 million.
Dexus has exchanged contracts to sell the first tranche of the portfolio in October 2020 and entered into put and call option arrangements to sell the second tranche in mid-2021. Dexus retains management and an ownership interest in the assets via its interest in DALT.
Deborah Coakley, Executive General Manager, Funds Management said these acquisitions continue to build on the Dexus Australian Logistics Trust’s strategy to acquire high quality and well leased assets that deliver favourable total returns.
“We have leveraged our extensive market knowledge, development and leasing capabilities and track record to successfully deliver these projects. Since 2010, we have developed and leased 47 industrial development projects across 784,000 square metres in Sydney, Melbourne and Brisbane,” Darren Steinberg, CEO of Dexus said.
The portfolio comprises five high quality industrial assets in Truganina, VIC and a high quality industrial business park in Botany, NSW including:
- 47-53 Foundation Drive, Truganina VIC
- 380 Doherty’s Road, Truganina VIC
- 7 Custom Place, Truganina VIC1
- 9 Custom Place, Truganina VIC2
- 58 Foundation Road, Truganina VIC
- 11 Lord Street, Botany NSW (Lakes Business Park South)