Dexus has announced the acquisition of a portfolio of industrial properties alongside APN Industria REIT for $1.5 billion, as the latter plunges into a fully underwritten circa $350 million equity raising to fund the purchase.
Delivering on its strategic objectives of investing in sustainable income streams, as well as expanding and diversifying the funds management business, Dexus has acquired several industrial properties alongside ADI for $1.5 billion.
The acquisition includes Perth-based Jandakot Airport, a fund-through development in Kemps Creek NSW and a Victorian-based logistics facility leased to Australia Post.
“These are high-quality investments that will further enhance the resilience of our property portfolio,” said Darren Steinberg, Dexus chief executive.
“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.”
Alongside this announcement, ADI confirmed a fully underwritten circa $350 million equity raising to partially fund its share of the acquisitions at a fixed issue price of $3.45 per security, comprising a circa $100 million institutional placement and circa $250 million one-for-three non-renounceable entitlement offer.
Dexus confirmed it intends to take up its full $40 million entitlement under ADI’s entitlement offer, and has also provided a commitment to sub-underwrite circa $39 million across the retail tranche of the entitlement offer.
Commenting on the sizable transaction, APN Industria REIT fund manager, Alex Abell said it represents a compelling opportunity for Industria to achieve transformational growth and deploy capital into assets with significant value creation opportunities.
“The acquisitions capitalise on the strong momentum in the industrial sub-sector, with growing ecommerce take-up in Australia set to drive approximately 2.4 million square metres of industrial space takeup between now and 2025,” Mr Abell said.
“The acquisitions also introduce a significant development pipeline that has the potential to deliver future value upside through further leveraging Dexus’s fully integrated platform.”