Dexus seeds DREP1 with assets in Melbourne, Sydney

Pitard Group, where ex-Steller executive Simon Pitard is a director, is behind the Elsternwick project.

Dexus has made the first investments for its Real Estate Partnership (DREP1), an opportunistic fund launched last August.

In Melbourne’s Elsternwick, the group will provide a $70 million construction loan facility for the Pitard Group, where executive of failed builder Steller, Simon Pitard, is a director.

The nine level complex with 99 dwellings and ground floor office and retail is under construction at 233-247 Glen Huntly Road.

DREP 1 will partner for the delivery with non-bank lender Solido Capital.

Also in the Victorian capital, on a 1500 square metre Richmond site, the fund will develop a 10,000 sqm A-grade office – assuming the vendor can obtain a permit.

Upon completion in 2024, it is believed this asset will be sold.

Meanwhile, in Sydney’s west Chester Hill, the trust will take a half interest in a 3.8 hectare industrial site, 149 Orchard Rd, with the potential to make way for a 20,000 sqm business park.

The end value of the projects is speculated to be $245m (story continues below).


DREP1 is a closed ended vehicle backing higher risk investments.

Dexus, which is a co-investor, last year said the entity would be the first in a planned series of opportunistic funds.

“The fund will seek to provide investors with an enhanced return via exposure to investments in property repositioning, development, special situation opportunities and alternative credit,” the manager added.

“DREP1 represents a unique opportunity for unlisted investors to access a concentrated exposure to this strategy, which has not previously been made available.

“DREP1 will be positioned for investment opportunities as a provider of both capital and capability, drawing upon Dexus’s large scale integrated real estate platform to provide the fund with competitive differentiation”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of