This article is from the Australian Property Journal archive
THE Dexus Convenience Retail REIT (DXC) has advanced its capital recycling program with the sale of seven Queensland assets for $32.8 million.
The single-tenanted assets were largely located in region and regional city areas, with six of the assets sold as portfolio.
The assets included 49 Tolga Road in Atherton, 100/22 Nicholson Street in Banana, 900 Ingham Road in Bohle, 2 Mulgrave Street in Gin Gin, 921 Nambour Connection Road in Nambour, 102-104 Cook Street in Portsmith and 708 Gympie Road in Lawnton.
By June 2023 book value, 49 Tolga Road was worth $7.1 million, $ 2.1 million, 100/22 Nicholson Street was worth $3.9 million, 900 Ingham Road $4.7 million, 921 Nambour Connection Road $1.6 million and 102-104 Cook Street $6.9 million. While by HY22 figures 708 Gympie Road’s book value was at $5.8 million.
Meaning the disposals were largely in line or above, the combined previous book value of $32.1 million.
“It is pleasing to finalise additional asset sales on attractive price terms as we further curate the portfolio,” said Jason Weate, fund manager at Dexus Convenience Retail REIT.
“Total year-to-date asset sales reduce pro forma gearing by 360 basis points, supporting capital redeployment into our Glass House Mountains redevelopment which is expected to commence in early 2025.”
DXC has also settled on its sale of 25 Bolam Street in Garbutt QLD and 77-79 Bowen Street in Rosslea QLD, as initially announced in August.
Settlement on the seven asset sales is expected for late November 2024.
DXC has also reaffirmed its FY25 guidance for FFO and distributions of 20.6 cents per security, having made it out of the red in FY24, delivering a $3.4 million net profit after tax, after a loss of $8.4 million last year.
