Dexus acquires $1.5 billion logistics portfolio
Dexus has expanded its logistics portfolio with the acquisition of Jandakot Airport in Perth, including properties in Melbourne, Sydney and Perth for a combined price of $1.5 billion.
The acquisition also included land in Kemps Creek, New South Wales, and a Victoria-based logistics facility leased to Australia Post.
Darren Steinberg, CEO of Dexus said the high-quality investments will further enhance the resilience of Dexus’ property portfolio.
“The near term development potential and scope to enhance returns by introducing third party capital make this a compelling opportunity, and one aligned with our priorities to grow our funds management business and recycle capital into high returning opportunities,” Steinberg explained.
“This transaction also provides the opportunity to achieve a step change for ADI as it secures an interest in quality logistics-oriented real estate with embedded development potential,” he said.
The transaction was done with APN Industria REIT (ADI), which will raise a total of $350 million in equity to partially fund its share of the acquisitions at a fixed issue price of $3.45 per security. This comprises a circa $100 million institutional placement and circa $250 million 1-for-3 non-renounceable entitlement offer.
Dexus intends to take up its full $40 million entitlement under ADI’s Entitlement Offer, and has also provided a commitment to sub-underwrite $39 million across the retail tranche of the Entitlement Offer.
Jandakot Airport is the major General Aviation Airport in Western Australia encompassing 620 hectares, with close proximity to Fremantle Port, major road networks and nearby amenity.
Dexus and ADI will jointly acquire the 42,500sqm 10 prime logistics facility in Sydney’s west as a fund-through development for a combined total $125.4 million.
ADI will acquire 100% of 2 Maker Place, Truganina in Victoria for $69.0 million.
The combined transactions will be accretive to Dexus’s Adjusted Funds From Operations per security for FY22. Dexus will update the market regarding guidance at the HY22 result in February 2022.