- Proceeds of the sale will be utilsied to repay debt and stenghthen the balance sheet of the fund
- The next refinancing event will not occur until mid-2024, says DXI Fund Manager
- Settlement for the asset is expected by the end of this month
Dexus Industria REIT (ASX: DXI) is continuing on its strategic vision to become the leading industrial REIT in Australia, by announcing the sale of 1A and 1C Homebush Bay Drive, Rhodes, NSW.
The transaction will realise gross proceeds of $160.50 million, excluding transaction costs.
Proceeds of this sale will be utilised to repay debt, strengthening the fund’s balance sheet, reducing pro-forma gearing by around 7%. It will also increase pro-forma interest rate hedging by circa 20%.
“The sale progresses our strategy of creating Australia’s leading industrial REIT, enhances balance sheet resilience and reduces income risk across the portfolio, and following the anticipated cancellation of surplus debt facilities, the next refinancing event will not be until mid-2024,” said Alex Abell, DXI Fund Manager.
Upon the completion of the sale, the portfolio will consist of 92 assets valued at $1.5 billion.
88% of the portfolio will consist of investments in high-quality industrial and logistical assets. These are expected to benefit from strong rental growth, caused by record low vacancy and constrained supply.
The weighted average lease expiry (WALE) will increase to 6.2 years, and occupancy to 98.7%.
Settlement is expected at the end of November 2022. DXI maintains its FY23 guidance to be 16.7 – 17.5 units per security, with a distribution of 16.4 units per security.
