Dexus Industria REIT Announces $160.5 Million Sale of Homebush Bay Drive Assets

  • Proceeds from the sale will be used to repay debt and strengthen the fund’s balance sheet
  • Next Refund Event Won’t Happen Until Mid-2024, Says DXI Fund Manager
  • Settlement of the asset is expected by the end of this month

Dexus Industria REIT (ASX: DXI) continues its strategic vision to become Australia’s leading industrial REIT, announcing the sale of 1A and 1C Homebush Bay Drive, Rhodes, NSW.

The transaction will realize gross proceeds of $160.50 million, excluding transaction fees.

The proceeds from this sale will be used to repay debt, thereby strengthening the fund’s balance sheet, reducing pro forma debt by approximately 7%. This will also increase the pro forma interest rate hedge by approximately 20%.

“The sale advances our strategy to create Australia’s first industrial REIT, improves balance sheet resilience and reduces income risk across the portfolio, and following the planned cancellation of excess credit facilities, the next refinancing event will not take place until mid-2024,” Alex said. Abell, DXI fund manager.

Once the sale is complete, the portfolio will consist of 92 assets valued at $1.5 billion.

88% of the portfolio will consist of investments in quality industrial and logistics assets. These should benefit from strong rental growth, due to a record vacancy rate and limited supply.

The weighted average lease term (WALE) will increase to 6.2 years and the occupancy rate to 98.7%.

Settlement is expected in late November 2022. DXI maintains its guidance for FY23 at 16.7 – 17.5 units per security, with a payout of 16.4 units per security.

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