Dexus in c$1b play for Perth airport, industrial estate
In what would be its first operational infrastructure investment, Dexus is speculated to be paying more than $1 billion for Perth’s Jandakot Airport and the adjoining Jandakot City business park.
The property is being offered by Ascot Capital, which, backed by Swazi billionaire Nathan Kirsh, secured the 99-year leasehold for the 622 hectare parcel in 2005.
Opened in 1963, the airfield is Western Australia’s chief major aviation airport and one of the country’s largest flying training bases.
The industrial estate spreads 150ha (it was 200ha prior to Ascot selling parts of it).
Jandakot is 20 kilometres south of Perth.
Jandakot City
Amongst Jandakot City’s c50 occupiers to date are Aldi, with 48,000 square metres, Kmart (41,700 sqm), Reece Plumbing (25,000 sqm) and Super A-mart (23,000 sqm).
In 2015, New York listed oil and gas group Schlumberger committed to an 11,000 sqm facility.
About 380,000 sqm of product has been constructed.
Another c400,000 sqm is intended.
Any sale to Dexus is understood not to involve an agent.
According to Forbes, Mr Kirsh has a personal wealth of A$6.3b (story continues below).
Diversifying Dexus
Dexus is Australia’s largest office landlord, holding c$14b of product.
It also owns c$3b of industrial real estate including land in Ravenhall making way for distribution centres pre-committed to Amazon and Myer. Last week, we reported the manager paid the McPhee family $186m – a price reflecting a sub four per cent yield – for four east coast warehouses.
The group also recently outlaid $125.5m on a 30ha Kemps Creek block capable of making way for a c155,000 sqm business park.
In June, Dexus formed a partnership with Australian Unity which saw it pick up half of Adelaide’s unbuilt Australian Bragg Centre.
The company has been buying healthcare assets separately too, including Perth’s Bethesda Clinic, part of a university campus in Melbourne’s Parkville and a hospital and car park, at Spring Hill, north of Brisbane.
Three months ago, it made a successful c$320m bid for APN – which manages two unlisted trusts holding service stations, amongst other assets.
In April, Dexus acquired the c$5.4b AMP Capital Diversified Property Fund – bringing its funds under management to c$25b.
Ascot Capital meanwhile, has over the past two years purchased numerous offices including at Murarrie and Port Macquarie.
It has divested investments too including a Crestmead factory it co-owned with Sentinel. A fortnight ago we reported the Perth-based manager was selling GPT a portfolio of 26 warehouses and four offices for a total of c$800m.
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