Dexus has formed a partnership with Australian building materials company Boral to develop a A$10bn (€6bn) logistics precinct.
The project is located on 630 hectares of land owned by Boral at Ravenhall, on the outskirts of Melbourne. It is set to be developed in stages, with completion expected by mid-2030.
Dexus and a future third-party capital partners would hold a combined 50% interest, and Boral holding the remaining 50%. Dexus intends to hold at least a 10% direct equity stake in each superlot, with the remaining capital provided by third-party partners.
Dexus will act as trustee, development manager, property manager and investment manager for the project, with management fees commencing on completion of its investment into each superlot unit trust.
Ross Du Vernet, Dexus Group CEO and managing director, said: “Opportunities of this scale are rare, with the potential to secure a generation of industrial growth in one of Australia’s most important logistics corridors.
“The joint venture structure aligns with our strategy to build a diversified and capital-efficient platform. The phased development approach will enable us to progressively bring third-party capital into each stage to deliver returns for our securityholders while creating significant investment opportunities for our fund clients.”
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