Dexus announced today that they had settled the second tranche of the sale of units in the Dexus Australian Logistics Trust (“DALT”) core portfolio to GIC.
The establishment of DALT was previously announced to the Australian Securities Exchange (ASX) on 26 November 2018 and the exercise of the option to acquire the additional 24% was announced to the ASX on 6 January 2020. Completion of the deal takes GIC's total investment to 49% of DALT.
DALT is an open-ended unlisted trust with an active acquisition and development mandate, seeded with assets from Dexus’s existing industrial portfolio and a development landbank. The additional investment is priced at $366.1 million, consistent with the 31 December 2019 independent valuations across the core Dexus industrial portfolio.
The Joint Venture’s core portfolio will have a weighted average lease expiry of 5.3 years and average occupancy by income of 98%. The portfolio features a 97% exposure to the strong performing Sydney and Melbourne markets and is weighted to traditional logistics facilities, which are leveraged to the growth of e-commerce.
The initial development landbank comprises interests in the three land development;
• 50% interest of 11-167 Palm Springs Road, Ravenhall, VIC
• 100% interest of 54 Ferndell Street, South Granville, NSW
• 100% interest of 425 Freeman Road, Richlands, QLD
These development projects were expected to deliver product for the Joint Venture with a total future completion value of circa $0.5 billion.
Dexus will utilise the proceeds to further strengthen its capital position, resulting in $1.3 billion of cash and committed undrawn debt facilities.