Property group Dexus has acquired an additional 25% stake in Brisbane’s Westfield Chermside for $683 million and established a new unlisted trust to hold its interest in the flagship shopping centre.
The stake was acquired from Scentre Group, which will retain a 50% interest in the asset. The transaction, previously flagged in October, was struck on a 5% capitalisation rate.
The deal follows the Dexus Wholesale Shopping Centre Fund’s purchase of a 25% interest in Westfield Chermside in July. The latest acquisition lifts Dexus’s total exposure to the asset to 50%.
As part of the latest move, Dexus has launched the Dexus Strategic Investment Trust series, designed to hold high-quality Australian assets for long-term value creation. Dexus will co-invest about $170 million in the new vehicle for a 49% interest, with external investors to hold the balance. Over time, Dexus intends to sell down its position to around $50 million.
Westfield Chermside is Australia’s second-largest regional shopping centre by both sales and gross lettable area and is positioned within one of the country’s fastest-growing metropolitan catchment areas, supporting a positive long-term growth outlook.
Dexus chief executive Ross Du Vernet said the group’s funds management platform continued to provide clients with access to “high-quality assets across multiple strategies which fit with their specific investment objectives”.
Additional $390 million raised for Dexus Real Estate Partnership
Separately, Dexus has raised a further $390 million of equity commitments for its Dexus Real Estate Partnership 2 strategy since mid-August. Total commitments now stand at $870 million, giving the opportunity fund additional capacity to pursue opportunistic real estate investments and positioning it as one of the largest and most diversified vehicles of its kind in the domestic market.
Meanwhile, Dexus’s dispute with superannuation fund co-investors over the ownership structure of Melbourne Airport is ongoing. The NSW Supreme Court has rescheduled mediation to occur by no later than March, with the hearing still set to commence in April. Dexus said it is working to resolve the matter in the best interests of its clients.