Dexus Industrial sells Kilsyth Asset at 17% premium

23 May 2022

Dexus Industria REIT has exchanged contracts to sell 147-153 Canterbury Road, Kilsyth, Victoria.

Dexus will realise net proceeds of $22.17 million, a 17% premium to book value as at 31 December 2021,
and represents a passing yield of 3.9%.

The property was built in 1972 and has an 11,882 square metre warehouse on site which is 100% occupied by B&D Australia, a subsidiary of the Dulux Group, who have been in occupation since the building was constructed. There is significant infrastructure investment in the facility – with eight gantry cranes and various forms of manufacturing equipment. 

Alex Abell, DXI Fund Manager, said: “The sale price is 233% above the $9.5 million acquisition price in
May 2019, and demonstrates that our asset selection and active management creates significant value.”

“Sale proceeds will be used to repay debt and strengthen the balance sheet, and over time will be used to fund higher returning opportunities including DXI’s developments in Sydney and Perth, as well as the on-market securities buyback program.”

The total unlevered return over the period of ownership is anticipated to be 35%.

Settlement is expected in late June 2022.