Dexus today announced the acquisition of a portfolio of quality industrial properties alongside APN Industria REIT for a combined acquisition price of $1.5 billion, delivering on its strategic objectives of investing in sustainable income streams as well as expanding and diversifying the funds management business.
The acquisition includes:
- Jandakot Airport, Perth, WA (initially 66.7% Dexus, 33.3% ADI), a high-quality industrial portfolio comprising 49 properties, circa 80 hectares of developable land and an airport operating business
- Lot 2, 884-928 Mamre Road, Kemps Creek, NSW (50% Dexus, 50% ADI), a fund-through development
- 2 Maker Place, Truganina, VIC (100% ADI), a logistics facility leased to Australia Post
Darren Steinberg, Dexus CEO said: “These are high-quality investments that will further enhance the resilience of our property portfolio. The near term development potential and scope to enhance returns by introducing third party capital make this a compelling opportunity, and one aligned with our priorities to grow our funds management business and recycle capital into high returning opportunities.
“This transaction also provides the opportunity to achieve a step change for ADI as it secures an interest in quality logistics-oriented real estate with embedded development potential. We see considerable opportunity in ADI and will be supporting the equity raising announced today.
“In addition to the transactions announced today, we remain focused on meeting the investment objectives of our third party capital partners, with the Dexus Industrial Partnership (DITA) in exclusive due diligence on the circa $123 million acquisition of 113-153 Aldington Road in Kemps Creek, NSW.”
Ross Du Vernet, Dexus Chief Investment Officer said: “These transactions will leverage our strong development capabilities and demonstrate how we are allocating more capital to opportunities with development potential and in structures where we are investing alongside third party clients.
“The acquisitions will provide our industrial business with a meaningful footprint in Western Australia and new product in the Sydney market to service our growing customer base. Across the group, the industrial portfolio is expected to grow to $11.3 billion (4.6 million square metres) post completion of the near term developments and recent acquisitions.”
ADI will undertake a fully underwritten circa $350 million equity raising to partially fund its share of the acquisitions at a fixed issue price of $3.45 per security, comprising a circa $100 million institutional placement and circa $250 million 1-for-3 non-renounceable entitlement offer.
Dexus intends to take up its full $40 million entitlement under ADI’s Entitlement Offer, and has also provided a commitment to sub-underwrite circa $39 million across the retail tranche of the Entitlement Offer. ADI’s offer price reflects an attractive FY22 distribution yield of 5.0%.