Dexus, APN spend $1.5b on airport, warehouses, land

Dexus and APN are paying $1.3 billion for Jandakot Airport plus land and investments around it.

Dexus, in partnership with APN Industria REIT (ADI) – which it now manages – has spent nearly $1.5 billion on industrial and infrastructure investments.

The acquisition includes Perth’s Jandakot Airport, for $200 million, and around it, 49 leased warehouses ($875m) and 80 hectares of undeveloped land ($225m) – a deal we mooted last month.

Dexus will initially hold a 66.7 per cent interest in the entities which hold the 76 year ground lease of this holding – however, it said, it will bring in a third party capital partner.

In Kemps Creek – the manager and ADI will purchase (then equally hold) a 42,500 square metre logistics facility on a funds through basis.

This asset, Lot 2, 884-928 Mamre Road, is costing $124.5m.

Practical completion is expected in May, 2023.

In Melbourne, the partnership is paying $69m for 2 Maker Place, Truganina (pictured, top) – a 30,000 sqm warehouse on 6.6 ha leased to Australia Post until 2025.

Like the Sydney asset, this property will be held 50/50.

Dexus acquired this investment last month as part of a $186m portfolio from McPhee Transport director Jay McPhee.

ADI to launch capital raising

ADI will now undertake a fully underwritten $350m equity raising to fund its part of the deal (story continues below).

Dexus will take up its full $40m entitlement under ADI’s Entitlement Offer.

It has also agreed to sub-underwrite $39m across the EO retail tranche.

“These are high quality investments that will further enhance the resilience of our property portfolio,” Dexus chief executive officer Darren Steinberg said.

“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,” he added.

“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,” according to the executive.

“In addition to the transactions announced today, we remain focused on meeting the investment objectives of our third party capital partners, with the Dexus Industrial Partnership (DITA) in exclusive due diligence on the c$123m acquisition of 113-153 Aldington Rd, Kemps Creek”.

Dexus chief investment officer Ross Du Vernet added “the acquisitions will provide our industrial business with a meaningful footprint in Western Australia and new product in the Sydney market to service our growing customer base”.

The group’s industrial portfolio is now worth $11.3b – containing 4.6m square metres of lettable area.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.