This article is from the Australian Property Journal archive
DARREN Steinberg, CEO of one of Australia’s biggest office landlords, Dexus, will be stepping down after 11 years at the helm in the latest top role handover among Australian REITs.
Steinberg will step down in 2024 and continue as CEO until the commencement of his successor. The board has commenced a process for his replacement.
“My decision to step down next year allows time for continuity. Dexus has a team of experienced and talented people and I will leave knowing that the business is in a strong position to continue to deliver long-term value,” Steinberg said.
“I am proud of everything we have achieved as a team for our investors, our customers and our people, and am committed to ensuring a smooth transition.”
Dexus chair, Warwick Negus, said, “I have had the privilege of working alongside Darren over the past three years. His commitment to excellence and innovation is impressive.”
“The very high standard of governance you see in Dexus is a reflection of the attitudes of the board, CEO and senior management over a long period of time.”
Steinberg’s decision follows a number of major Australian REITs witnessing personnel changes at the highest levels.
GPT has just poached Charter Hall chief financial officer Russell Prout as its new CEO to replace long-term chief executive Bob Johnston, who announced his retirement early in the year.
Johnston’s announcement came as Mirvac’s longstanding CEO and managing director, Susan Lloyd-Hurwitz handed over the reigns to Campbell Hanan, and just after Vicinity Centres appointed Peter Huddle as CEO following the fast-tracked exit of Grant Kelley.
In recent years, Tony Lombardo replaced Steve McCann in the top job at Lendlease, and Tarun Gupta took over from Mark Steinert at Stockland.
Office occupancy dips
In its quarterly update yesterday, Dexus said its office portfolio occupancy by income had reduced from 95.9% to 94.7% over the three months, primarily driven by vacancy in three Sydney assets located in fringe markets and outside the CBD core. It said Flight-to-quality and flight-to-core remain key themes, with well-located higher-quality buildings attracting stronger demand.
Over the quarter, a total of 34,088 sqm of office space was leased across 71 transactions with smaller customers. In Sydney, it secured 6,179 sqm across five leasing transactions at 1 Bligh Street, 5,774 sqm across four deals at 25 Martin Place, 1,643 sqm across five leasing deals at 56 Pitt Street, 1,555 sqm across 11 deals at Australia Square and 1,454 sqm across six deals at 1 Farrer Place.
In Melbourne, it renewed a customer for 2,700 smq at 180 Lonsdale Street, secured 2,235 sqm at 80 Collins Street, 2,185 sqm across 10 retail customers at QV Melbourne, 2,122 sqm across three leasing transactions at 385 Bourke Street and 1,376 sqm at Rialto Towers.
In Brisbane, secured 3,440 sqm across six existing and new customers at Waterfront Place and 3,959 sqm development leasing at 123 Albert Street, while in Perth 1,217 sqm was secured with existing and new customers at 240 St Georges Terrace and Kings Square.
Incentives came down from 30.0% to 27.7%.
Dexus’s industrial portfolio occupancy held at 99.7%. In Sydney’s Botany, it renewed customers across 2,620 sqm at Botany Quarter and 1,155 sqm at Lakes Business Park, while 7,000 sqm was renewed at 278 Orchard Road, Richlands, in Brisbane, and in Perth, it secured 9,447 sqm across existing and new customers at Jandakot Airport industrial
Precinct. The Airport and surrounding warehouses were acquired by Dexus two years ago in a $1.3 billion transaction, as the group began to diversify its portfolio.
This week, Dexus acquired 130 apartments in central Melbourne for an opportunity fund, and at the same time launched the second and “substantially larger” of a series of closed-ended funds aimed at investments in property repositioning, development, special situations and credit opportunities.
