Dexus (ASX:DXS) and APN Industria REIT (ASX:ADI) entered into an agreement to acquire Jandakot Airport Holdings Pty Ltd. from Ascot Capital Limited and Nathan Kirsch for AUD 1.3 billion on September 23, 2021. Under the terms, Initial settlement is expected to occur on October 31, 2021, with Dexus acquiring 100% of Jandakot City Holdings Pty Ltd and 49% of the company which owns the ground lease, Jandakot Airport Holdings for approximately AUD 825 million Dexus intends to bring in ADI for 33.3% shortly after initial settlement and additional third party equity capital partners into the Jandakot structure prior to settlement of the remaining 51% of JAH, which would result in Dexus's overall balance sheet interest in each of JCH and JAH reflecting an equal minority interest. Following the securing of equity commitments from additional third party capital partners and receipt of required regulatory approvals, settlement of the 51% remainder of JAH for AUD 70 million is expected to occur in March 2022.

As of November 1, 2021 Dexus has paid the initial settlement of the acquisition of Jandakot Airport. According to Dexus, Dexus Industria REIT (ADI) will settle on its 33.3% interest of each of JCH and JAH in mid-November 2021. Transaction also includes AUD 200 million for an operating airport deriving income from long term ground leases, landing fees and infrastructure services, reflecting a circa 19x EBIT multiple.

APN will fund its part of the transactions with a fully underwritten equity raising of AUD 350 million. The balance of the Acquisitions and associated transaction costs will be funded through existing and new bank debt facilities. Dexus will fund its share of the combined transactions through debt facilities.

In related transactions, Dexus and APN Industria REIT will acquire Lot 2, 884-928 Mamre Road, Kemps Creek, NSW and 2 Maker Place, Truganina, VIC. 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.

Ernst & Young Australia provided due diligence to Dexus in this transaction.