Dexus has upgraded its guidance to deliver distribution per security growth of not less than 2.5 per cent for the 12 months ended 30 June 2022, driven by better-than-expected outcomes across the business.
Last week Dexus announced it had entered into a purchase agreement with Collimate Capital, a wholly owned subsidiary of AMP Limited, to acquire Collimate’s real estate and domestic infrastructure equity business, with up to $27.9 billion of assets under management (AUM).
In its quarterly update on Tuesday, the firm confirmed it is holding consultation sessions with Collimate investors over the coming weeks to discuss the merits of the transaction and determine the Collimate AUM to be transferred to the Dexus platform as part of the transaction.
Dexus also reported a strong three-month period, with significant progress made against its strategic objectives of generating sustainable income streams and being the real estate investment partner of choice.
“During the period, we continued to grow and diversify our funds management business, welcoming Cbus Super as a new joint venture investor in the $1.3 billion Jandakot joint venture and securing Mercer Alternatives as a cornerstone investor in Dexus Real Estate Partnership 1,” said Dexus CEO, Darren Steinberg.
“We transacted $2.1 billion worth of properties across the group as we continue to recycle capital into higher returning opportunities including our $17.8 billion development pipeline,” he noted.
Touching on the Collimate transaction, Mr Steinberg said it “positions Dexus as a leading real asset manager, with new capabilities and an expanded product offering, underpinned by our best practice governance and risk management framework.”
Looking ahead, Mr Steinberg said Dexus remained focused on enhancing the resilience of its portfolio and maintaining high occupancy.
“Pleasingly, industrial markets remain strong, and we are seeing the first signs of improvement in Sydney office market effective rents.”
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
