This article is from the Australian Property Journal archive
DEXUS has sold a portfolio of industrial assets to the Dexus Australia Logistics Trust (DALT) for $269.4 million, on a passing yield of 5.3%.
The portfolio comprises five industrial assets in Melbourne’s western suburb of Truganina and an industrial business park in Sydney’s Botany, including:
- 47-53 Foundation Drive, Truganina
- 380 Doherty’s Road, Truganina
- 7 Custom Place, Truganina
- 9 Custom Place, Truganina
- 58 Foundation Rd, Truganina
- 11 Lord St, Botany NSW (Lakes Business Park South)
The Truganina assets are newly developed facilities located within Dexus’s Foundation at Truganina estate.
Lakes Business Park South is located 12 kilometres south-east from the Sydney CBD with immediate connections to Sydney Airport and Port Botany, together with easy freeway access via the Eastern Distributor.
The portfolio is 91% occupied with a WALE of 7.4 years.
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. Dexus retains management and an ownership interest in the assets via its interest in the fund.
Together with the acquisitions of two assets at Greenacre, NSW and Mickleham, VIC earlier this month, this portfolio will increase the size of the fund by circa $445 million.
Lakes Business Park South
Dexus funds management executive general manager Deborah Coakley said these acquisitions continue to build on the DALT’s strategy to acquire high quality and well leased assets that deliver favourable total returns.
Dexus CEO Darren Steinberg said this transaction is consistent with the strategy for these trading assets which was to develop, lease and sell for a trading profit.
“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 sqm in Sydney, Melbourne and Brisbane,” he added.
The sale is expected to contribute circa $35 million in trading profits pre-tax over FY21 and FY22.
Dexus has also exercised its put option in relation to the sale of its remaining 25% interest in 201 Elizabeth St Sydney for $157.5 million, which will contribute circa $34 million in trading profits pre-tax in FY21. The sale of the North Shore Health Hub, Stage 1 currently under development at 12 Frederick St, St Leonards and will also contribute to trading profits in FY21.
