Dexus has confirmed the acquisition of a number of Logistics facilities in a deal with McPhee Logistics which will ultimately boost its portfolio by $600m.
Part of the deal comprises 4 properties which comprise more than 70,000sqm which have been acquired for $186m;
- 2 Maker Place, Truganina Victoria (with expansion land)
- 116-130 Gilmore Road, Berrinba
- 1-21 McPhee Drive, Berrinba
- 1-21 McPhee Drive, Berrinba (Land)
The properties have an average lease expiry of 6.7 years and the deal reflects a yield slightly above 4 per cent.
In a second $125 million deal at Kemps Creek in Sydney, Dexus has taken over 30 hectares of zoned industrial land held by a group of private investors, which has with development plans 155,000sqm of industrial space.
Adding upside to the acquisitions, Dexus has secured a pre-commitment from McPhee Distribution Services to develop a logistics facility across 72,000sqm at 113-153 Aldington Road, Kemps Creek, where the logistics player will consolidate its NSW operations.
Mirvac, GPT and Frasers are heavily invested in the Kemps Creek precinct.
Both the McPhee portfolio and Kemps Creek transactions are subject to put and call options, which if exercised are expected to settle between financial years 2022 and 2023.
Dexus’ chief investment officer, Ross Du Vernet, said the “hyper-competitive” industrial market had pushed the group to rethink how it identified sites and secure opportunities. Almost 90 per cent of its deals had been off-market over the past year.
“We have transacted 18 properties and land banks with an on-completion value of circa $1 billion and have a further four properties in exclusive due diligence,” he said.
“On completion of developments underway, the group’s industrial exposure will be close to $10 billion – so it’s a very significant part of our business.”
Related Articles
