Dexus and Frasers Property Australia lodged plans with City of Sydney for the development of approximately 130,000 square metres of workspace space across two premium office towers at Central Place Sydney. The development comprises towers with 35 and 37 levels respectively, including rooftop community spaces and vertical gardens, environmentally responsive façade and structure, and a diverse range of retail and dining options and public amenity. This development will position Tech Central as a key driver of innovation and growth in the Asia Pacific region and significantly contribute to large-scale urban change in Sydney.
Post 31 March 2021, Dexus lodged a planning amendment for the development at 60 Collins Street, Melbourne that would see the height of the proposed tower increased by an additional 55 metres, from 23 to 38 levels, with the net lettable area potentially increasing by circa 15,900 square metres.
At Horizon 3023, Ravenhall, an additional 6.8 hectares of land, adjacent to the existing industrial estate, was acquired by the Dexus Australian Logistics Trust (DALT) and DWPF to improve the existing masterplan and provide the opportunity to create additional industrial stock to respond to an active leasing market. Leasing momentum continued with the Electrolux pre-commitment secured and an adjacent speculative building of 40,000 square metres will be constructed at the same time, to capture synergies in the project delivery. New buildings totalling 175,100 square metres are now completed or under construction across 31% of the expanded site area.
Dexus's focus on progressing its developments is helping to satisfy the demand for quality product in the healthcare and industrial sectors from both customers and third party capital partners. Dexus continues to seek on and off market opportunities to replenish its development and trading pipeline with new opportunities.
Transactions
Continuing an active year of transactions, the Dexus Office Partnership (in which Dexus holds a 50% interest) conditionally exchanged contracts to sell 10 Eagle Street, Brisbane for USD285 million^[6]. Dexus also conditionally exchanged contracts to sell a 50% interest^[7] in Grosvenor Place, Sydney for USD925 million.
The acquisition of a 33.33% interest in 1 Bligh Street, Sydney for USD375 million^[8] by MDAP (in which Dexus holds a 10% interest) reinforced the ongoing strength of demand from international institutions for high quality Australian office asset exposure under Dexus platform management.
The Simplification of the Dexus corporate structure
On 23 March 2021, Dexus released a Notice of Extraordinary General Meeting and Explanatory Memorandum relating to a proposal to simplify the Dexus corporate structure. This involves an internal reorganisation from a complex quadruple stapled trust structure to a group comprising two stapled trusts by "top-hatting" three of the existing trusts (DDF, DIT and DOT) with a newly established trust (DPT) which will be stapled to DXO to form the Simplified Group.
On 22 April 2021, Dexus Security holders approved all the resolutions relating to the Simplification. Next steps include obtaining the necessary stamp duty approvals and relief, and then with that information the Board will determine whether it continues to believe that the Simplification is still in the best interests of Security holders, ensuring all Security holders are informed of the timetable in due course.
Summary and outlook
Darren Steinberg said: "Our diversified property platform has had a busy start to the calendar year. Moving forward, we will continue to execute on our strategic initiatives which include increasing the resilience of portfolio income streams, expanding and diversifying the funds management business, and progressing the development pipeline to drive superior risk-adjusted returns for investors. With the Australian economy in recovery mode, we are optimistic about the opportunities that are before us."
Dexus maintains its guidance of achieving an FY21 full year distribution per security amount that is consistent with FY20, subject to there being no reinstatement of any major lockdowns or unforeseen circumstances. The FY20 full year distribution per security amount was 50.3 cents.
Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited.
For further information please contact:
Investors Media Rowena Causley Louise Murray Senior Manager, Investor Relations Senior Manager, Corporate Communications +61 2 9017 1390 +61 2 9017 1446 +61 416 122 383 +61 403 260 754 rowena.causley@dexus.com louise.murray@dexus.com
^[1] Including 98 leasing transactions across the Dexus office portfolio and 10 development leasing transactions.
^[2] Reflecting the acquisition price for the 33.33% interest in 1 Bligh Street (of which Mercatus will hold a 90% share and Dexus a 10% share) and excludes acquisition costs, other costs and purchase price adjustments
^[3] Acquisition price excludes acquisition costs, other costs and purchase price adjustments.
^[4] Excluding development leasing.
^[5] Including Heads of Agreement.
^[6] Gross sale proceeds excluding transaction costs.
^[7] The 50% interest comprises 25% owned by Dexus and 25% owned by the Dexus Office Partnership, in which Dexus holds a 50% interest. The sale will realise total net proceeds before transaction costs of USD925 million for the 50% interest or USD694 million for Dexus.
^[8] Reflecting the acquisition price for the 33.33% interest in 1 Bligh Street (of which Mercatus will hold a 90% share and Dexus a 10% share) and excludes acquisition costs, other costs and purchase price adjustments. ----------------------------------------------------------------------------------------------------------------------- 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 USD32.1 billion. We believe that the strength and quality of our relationships will always be 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 USD16.5 billion of office and industrial properties. We manage a further USD15.6 billion of office, retail, industrial and healthcare properties for third party clients. The group's USD11.5 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.6 million square metres of office workspace across 51 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 more than 29,000 investors from 24 countries. With 36 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 -----------------------------------------------------------------------------------------------------------------------
04-May-2021 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: 1191994
End of Announcement DGAP News Service
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May 04, 2021 00:46 ET (04:46 GMT)
