Dexus Industria REIT (DXI) today announced that it has agreed to sell 16-28 Quarry Road, Stapylton, Queensland for $66.9 million, which is broadly in line with 31 December 2022 book value.
The property comprises two standalone warehouses, each providing approximately 20,400 sqm of clear span internal space and are strategically located in the Yatala Enterprise Area, approximately 40 kilometres south of the Brisbane CBD and approximately 40 kilometres north of the Gold Coast CBD.
Dexus (then APN Industria REIT) acquired the property in January 2020 for $65.52m from GPT.
The sale is consistent with DXI’s strategy of leveraging the Dexus platform to generate superior risk-adjusted returns and will:
- reduce pro-forma look-through gearing by circa 3 percentage points (from 29.5% at 31 December 2022)
- create additional balance sheet flexibility to pursue future opportunities, including developing land interests owned by DXI in Sydney and Perth that have the potential to improve portfolio quality and enhance long- term performance
- reduce DXI’s exposure to interest rate rises by increasing average hedging by circa 8 percentage points.
Alex Abell, DXI Fund Manager said: “In the past eight months we have contracted to sell approximately $230 million of assets, which is a great result for the Fund’s balance sheet and positions DXI for future potential opportunities. Proceeds will initially be utilised to repay debt, and in due course will be deployed into higher returning opportunities.”
Settlement is expected in October 2023.
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