DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Real Estate
Dexus Finance Pty Limited: Dexus secures future trading profits while
growing DALT
30-Jul-2020 / 08:19 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*
*30 July 2020*
*Dexus secures future trading profits while growing Dexus Australian
Logistics Trust (DALT)*
Dexus today announced that it has entered into agreements to sell a high
quality portfolio of industrial assets to the Dexus Australia Logistics
Trust (DALT or the Fund), while at the same time contracting future trading
profits for Dexus in FY21 and FY22.
The portfolio comprises five high quality industrial assets in Truganina,
VIC and a high quality industrial business park in Botany, NSW including:
- 47-53 Foundation Drive, Truganina VIC
- 380 Doherty's Road, Truganina VIC
- 7 Custom Place, Truganina VIC1
- 9 Custom Place, Truganina VIC2
- 58 Foundation Road, Truganina VIC
- 11 Lord Street, Botany NSW (Lakes Business Park South)
The Truganina assets comprise newly developed premium grade facilities
located within Dexus's Foundation at Truganina industrial estate, located 18
kilometres west from the Melbourne CBD with convenient access to the Princes
and West Gate Freeway, Western Ring Road and the Deer Park Bypass.
Lakes Business Park South is strategically located in Botany, 12 kilometres
south-east from the Sydney CBD with immediate connections to Sydney Airport
and Port Botany, together with easy freeway access via the Eastern
Distributor.
The portfolio is 91% occupied with a WALE of 7.4 years and has been
contracted to be sold to DALT at a price of $269.4 million3 representing a
passing yield of 5.3%.
For DALT, in which Dexus has an interest, this acquisition enables access to
a portfolio of properties off-market, while delivering on its active
acquisition and development mandate. When combined with the DALT
acquisitions of two high quality assets at Greenacre, NSW and Mickleham, VIC
which were announced to the Australian Securities Exchange (ASX) on 7 July
2020, this portfolio will increase the size of the Fund by circa $445
million.
Dexus has exchanged contracts to sell the first tranche of the portfolio in
October 2020 and entered into put and call option arrangements to sell the
second tranche in mid-20214. Details relating to the properties are included
in the Appendix.
Deborah Coakley, Executive General Manager, Funds Management said: "These
acquisitions continue to build on the Dexus Australian Logistics Trust's
strategy to acquire high quality and well leased assets that deliver
favourable total returns."
Dexus retains management and an ownership interest in the assets via its
interest in DALT.
Darren Steinberg, CEO of Dexus said: "We are pleased to have been able to
retain exposure to these quality industrial assets via our interest in the
Dexus Australian Logistics Trust, while contracting trading profits for
Dexus investors.
We have leveraged our extensive market knowledge, development and leasing
capabilities and track record to successfully deliver these projects. Since
2010, we have developed and leased 47 industrial development projects across
784,000 square metres in Sydney, Melbourne and Brisbane."
For Dexus, this transaction is consistent with the strategy for these
trading assets which was to develop, lease and sell for a trading profit.
The sale is expected to contribute circa $35 million in trading profits
pre-tax over FY21 and FY22 (in the event the options are exercised), with
further trading profits that could be realised, subject to favourable
leasing outcomes being achieved.
Dexus has also exercised its put option in relation to the sale of its
remaining 25% interest in 201 Elizabeth Street, Sydney for $157.5 million,
originally announced to the ASX on 9 August 2019. This sale will contribute
circa $34 million in trading profits pre-tax in FY21.
The sale of the North Shore Health Hub, Stage 1 currently under development
at 12 Frederick Street, St Leonards and originally announced on 2 September
2019, will also contribute to trading profits in FY21.
Further details relating to trading profits will be provided at Dexus's
Annual Results to be released to the ASX on Wednesday 19 August 2020.
*Appendix*
*47-53 Foundation Drive, Truganina VIC (Tranche 1)*
The property comprises two office/warehouse facilities across 33,637 square
metres on two adjoining lots totalling 56,180 square metres and adjacent to
existing DALT properties. The property is leased to Secon Freight Logistics
and has a weighted average lease expiry by income of 6 years. The facility
design includes single direction truck flow movements, LED daylight harvest
lighting, centralised pumps and tanks, 99kW solar array for each facility
and harvested rainwater for landscaping irrigation.
*380 Doherty's Road, Truganina VIC (Tranche 1)*
The property comprises a new office/warehouse facility across 9,180 square
metres on a 1.49 hectare site and is adjacent to existing DALT properties.
The property is leased to Primary Flooring Pty Ltd and has weighted average
lease expiry by income of 6.3 years. The facility benefits from single
direction truck flow with super canopies for all weather loading protection,
integrated corporate office, harvested rain water for landscaping
irrigation, 99kW solar array and LED daylight harvest lighting.
*7 Custom Place, Truganina VIC (Tranche 2)*
The property comprises a new purpose-built banana and avocado ripening
facility across 7,280 square metres on a 2.07 hectare site and is adjacent
to existing DALT properties. The warehouse is fully temperature controlled
and leased to Coles Supermarkets Australia Pty Ltd with a weighted average
lease expiry by income of 15 years. The facility also includes a 600kW
extensive solar array for operational cost savings.
*9 Custom Place, Truganina VIC (Tranche 2)*
The property comprises two new separate office/warehouse facilities across
26,610 square metre and 18,810 square metres on a 7.78 hectare site and is
adjacent to existing DALT properties. The properties are leased to AS Colour
and eStore Logistics and have a weighted average lease expiry by income of
10 years, with staged practical completion of the facilities scheduled for
July and October 2020. The facilities are designed with single direction
truck movements and extended super canopies providing all weather loading
protection. The facilities benefit from high internal clearance of 14.6
metres and point loading at 8 tonne as well as 99kW solar arrays, LED
daylight harvest lighting and harvested rainwater for landscaping
irrigation.
*58 Foundation Road, Truganina VIC (Tranche 2)*
The property comprises a new office/warehouse facility across 8,350 square
metres, on a 1.37 hectare site and is adjacent to existing DALT properties.
The property is leased to Speciality Packaging Group Pty Ltd and has a
weighted average lease expiry by income of 7 years. The facility is designed
with single direction truck flow movements, large circa 35 metre wide
hardstands with super canopies for all weather loading protection, LED
daylight harvest lighting, 99kW solar array, and harvested rainwater for
landscaping irrigation.
*11 Lord Street, Botany NSW (Lakes Business Park South) (50% in Tranche 1
and 50% in Tranche 2)*
The property comprises a newly redeveloped 30-unit business park across
18,786 square metres and three buildings, on a 2.98 hectare site and is
located adjacent to an existing DALT property. The property is leased to
various tenants including Glassons, Medlab, Fedex and Sunbeam Corporation
and has a weighted average lease expiry by income of 3.5 years.
_Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus
Funds Management Limited._
_1. _Council changed address from 12A Felstead Drive, Truganina VIC.
2. Council changed address from 12B & 12C Felstead Drive, Truganina VIC.
3. 100% sales price.
4. Completion of Lakes Business Park South is subject to conditions
precedent. Dexus is not aware of any reasons why these conditions will not
be satisfied.
*For further information please contact:*
*Investors * *Media*
Jessica Johns Louise Murray
Senior Manager, Investor Senior Manager, Corporate
Relations Communications
+61 2 9017 1368 +61 2 9017 1446
+61 427 706 994 +61 403 260 754
jessica.johns@dexus.com louise.murray@dexus.com
Information and Explanation of the Issuer to this News:
*About Dexus*
Dexus is one of Australia's leading real estate groups, 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. www.dexus.com
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
30-Jul-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: +61 2 9017 1100
Fax: +61 2 9017 1101
E-mail: ir@dexus.com
Internet: www.dexus.com
ISIN: XS1961891220
WKN: A2RZHG
Listed: Regulated Unofficial Market in Frankfurt
EQS News ID: 1105755
End of Announcement DGAP News Service
1105755 30-Jul-2020 CET/CEST
(END) Dow Jones Newswires
July 30, 2020 02:19 ET (06:19 GMT)
