This article is from the Australian Property Journal archive
DEXUS Property Group has won big support for its 1 Bligh Street, Sydney office project with the sale of a one-third interest in the development to Cbus Property.
The investment will reduce Dexus’ overall committed development exposure by more than $200 million to $150 million over the next three years.
Cbus will join Dexus and Dexus Wholesale Property Fund to develop the property. Dexus has also granted DWPF, who own a 31.8% interest, an option on similar terms to increase their ownership in the venture by approximately 1.5%, thus regularising interests to three equal shares.
Cbus Property’s chief executive Adrian Pozzo said this joint venture will also establish its presence in the Sydney market and provide Cbus with another premium quality investment complementing the recently completed CBW and E&Y office towers in Melbourne and the 140 William Street office tower development in Perth.
1 Bligh Street will be home to Clayton Utz scheduled for completion in mid 2011.
Meanwhile Dexus’ chief executive Victor Hoog Antink said the trust will write down $773 million from the value of its property portfolio as at December 31 2008.
At this stage, Hoog Antink said approximately two thirds of this relates to the overseas portfolio and the balance the Australian portfolio.
The effect of these devaluations, together with mark to market adjustments and the recent capital raising, will be a revised Net Asset Value per security of $1.33.
As a result, gearing is estimated at 37.3%.
Hoog Antink confirmed the group was on track to deliver earnings of 10.8 cents per security and a distribution of 7.6 cents per security for the financial year ended June 30 2009.
Australian Property Journal
