- The Woy Woy property completes the sale of three sub-regional shopping centres for DWPF
- Contracts exchanged to sell 8 Nicholson St and 112 Cullen Ave for a combined $245.6M (DXS)
- Two trading properties also sold (DXS)
Over half a billion in sales have occurred across Australia from both Dexus (ASX: DXS) and Dexus Wholesale Property Fund (DWPF), with properties mostly on the east coast.
The latest transaction will see DWPF complete the sale of three sub-regional shopping centres for the fund, and the six properties DXS has sold will see combined proceeds of $483 million.
Dexus Wholesale Property Fund sells Woy Woy shopping centre
DWPF has reached a conditional agreement for the sale of its Woy Woy Deepwater Plaza for $112 million. On settlement, the transaction will complete the sale of three sub-regional shopping centres, totalling some $180 million in sales:
- Deepwater Plaza, Woy Woy, conditionally exchanged for $112 million,
- Beenleigh Marketplace, Queensland, exchanged for $85 million, and
- Shepparton Marketplace sold for $88.1 million.
DWPF Fund Manager, Michael Sheffield said: “The divestments of these assets continues the implementation of the Fund’s strategy to hold larger regional retail assets.”
The Deepwater Plaza is located in New South Wales, and is home to Coles, Kmart, Best & Less, Service NSW, and is the only sub-regional shopping centre of its size on the Central Coast of NSW.
Beenleigh Marketplace was recently acquired by Mintus, with the centre anchored by Big W and Woolworths.
Finally, Shepparton Marketplace is a single level sub-regional shopping centre in Goulburn Valley, some 200 kilometres north of Melbourne. The property is anchored by Woolworths and Big W.
Dexus (ASX: DXS) sells six assets, and trading profit de-risked
Today, the company announced the sale of six properties for a combined $483 million.
Two of the Dexus sales are trading properties, with combined sale proceeds of $145.6 million. The company said it is expected the sales will contribute approximately $24 million in aggregate pre-tax trading profits across FY23 and FY24. The trading properties are:
- Dexus’ 50% stake in Australian Bragg Centre, Adelaide, which was sold to Dexus Healthcare Property Fund, realising net proceeds of $102.5 million and is expected to contribute approximately $19 million pre-tax trading profits in FY23, and
- 20 Distribution Drive, Laverton, which was sold for $43.1 million on a fund-through basis and is expected to contribute approximately $5 million in aggregate pre-tax trading profits to be recognised across FY23 and FY24.
Together with the sale of 12 Frederick Street, St Leonards, Dexus has now secured approximately $69 million pre-tax trading profits to be recognised in FY23, plus approximately $5 million pre-tax trading profits to be recognised across FY23 and FY24.
In addition, Dexus has settled on the sale of two additional properties, reflecting an average 2.5% discount to book value at 30 June 2022:
- 47 Acanthus Street, Darra for $15.9 million, which settled on 4 November 2022, and
- 19 Stoddart Road, Prospect for $76.2 million, which settled on 16 December 2022.
DXS has exchanged contracts to sell the remaining two properties for combined sale proceeds of $245.6 million, reflecting an average 12.5% discount to book value at 30 June 2022. These properties are:
- 8 Nicholson Street, Melbourne for $213.7 million, with settlement expected in July 2023, and
- 112 Cullen Avenue, Eagle Farm for $31.9 million, with settlement expected in January 2023.
The sales of 20 Distribution Drive, 8 Nicholson Street and 112 Cullen Avenue are subject to FIRB approval. The sale of 20 Distribution Drive is subject to subdivision.
