DGAP-Adhoc: Dexus Finance Pty Limited: Dexus establishes new JV to acquire interest in Rialto Towers, Melbourne

DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Acquisition/Real 
Estate 
Dexus Finance Pty Limited: Dexus establishes new JV to acquire interest in 
Rialto Towers, Melbourne 
 
06-Apr-2020 / 02:36 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR of the Regulation 
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*Dexus (ASX: DXS)* 
 
*ASX release* 
 
*6 April 2020* 
 
*Dexus establishes new JV to acquire interest in Rialto Towers, Melbourne* 
 
Dexus today announced the establishment of a new Joint Venture ("JV") with 
GIC that has exchanged contracts to acquire a 50% interest in Rialto Towers, 
525 Collins Street, Melbourne, for $644 million[1]. 
 
GIC will hold a 90% share in the JV and Dexus will hold the remaining 10%. 
Dexus is the investment manager of the JV and has been appointed as the 
manager of the entire Rialto Towers complex. 
 
The establishment of the JV and acquisition of Rialto Towers is consistent 
with Dexus's strategic objective of being a wholesale partner of choice, 
providing the group with a breadth of capital sources through economic 
cycles. 
 
Dexus CEO, Darren Steinberg said: "We are pleased to continue to grow our 
relationship with GIC, enabling them to extend their investments into the 
Australian office market. In the current environment, we are focused on 
business continuity, and pleasingly were able to close this off-market 
transaction within our targeted timeframes." 
 
Rialto Towers is an iconic prime-grade, 55 storey building, and is one of 
the largest office buildings located in Melbourne's Central Business 
District. It is well located on Collins Street with good access to transport 
and other key amenities. The property is 91.7% occupied with a weighted 
average lease expiry of 4.6 years as at 1 March 2020. Rialto Towers is 
expected to benefit from the positive supply-demand dynamics of Melbourne's 
office market over the long term. 
 
The JV increases third party assets under management and reinforces Dexus's 
ability to secure and transact high quality opportunities off-market. 
 
In these times of elevated uncertainty Dexus continues to focus on 
preserving capital while selectively investing in assets with long-term 
value and strong fundamentals. 
 
The property is expected to settle in May 2020 (subject to FIRB approval), 
with Dexus's interest funded from existing debt facilities. 
 
This transaction follows the settlement of GIC's additional investment in 
the Dexus Australian Logistics Trust, announced to the Australian Securities 
Exchange on 1 April 2020, and further strengthens Dexus's growing 
relationship with GIC. 
 
_Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus 
Funds Management Limited._ 
 
*For further information please contact:* 
 
*Investors*                     *Media* 
Jessica Johns                   Louise Murray 
Senior Manager, Investor        Senior Manager, Corporate 
Relations                       Communications 
[phone]                 [phone] 
[phone]                 [phone] 
[e-mail]         [e-mail] 
 
[1] Reflecting the net acquisition price for the 50% interest in Rialto 
Towers (of which GIC will hold a 90% share and Dexus a 10% share) and 
excludes acquisition costs, incentives and other costs. 
 
Information and Explanation of the Issuer to this News: 
 
*About Dexus* 
 
Dexus is one of Australia's leading real estate groups, proudly managing a 
high-quality Australian property portfolio valued at $33.8 billion. We 
believe that the strength and quality of our relationships is central to our 
success and are deeply committed to working with our customers to provide 
spaces that engage and inspire. We invest only in Australia and directly own 
$16.8 billion of properties, with a further $17.0 billion of properties 
managed on behalf of third-party clients. The group's $11.2 billion 
development pipeline provides the opportunity to grow both portfolios and 
enhance future returns. With 1.8 million square metres of office workspace 
across 55 properties, we are Australia's preferred office partner. Dexus is 
a Top 50 entity by market capitalisation listed on the Australian Securities 
Exchange (trading code: DXS) and is supported by 27,000 investors from 20 
countries. With 35 years of expertise in property investment, development 
and asset management, we have a proven track record in capital and risk 
management, providing service excellence to tenants and delivering superior 
risk-adjusted returns for investors. At 31 December 2019, Dexus's gearing 
(look-through) was 25.5% which is below the 30-40% target range with a debt 
duration of 7.4 years, $1.3 billion of cash and committed undrawn bank 
facilities available and minimal debt financing requirements with circa 
$400m of debt maturing in late FY21. www.dexus.com 
 
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Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible 
Entity for Dexus (ASX: DXS) Level 25, 264 George Street, Sydney NSW 2000 
 
06-Apr-2020 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:    English 
Company:     Dexus Finance Pty Limited 
             264 George Street 
             2193 Sydney 
             Australia 
Phone:       [phone] 
Fax:         [phone] 
E-mail:      [e-mail] 
Internet:    www.dexus.com 
ISIN:        XS1961891220 
WKN:         A2RZHG 
Listed:      Regulated Unofficial Market in Frankfurt 
EQS News ID: 1015749 
 
End of Announcement DGAP News Service 
 
1015749 06-Apr-2020 CET/CEST 
 
 

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April 05, 2020 20:36 ET (00:36 GMT)