Australian real estate investment trust Dexus Industria REIT (DXI) has bought a warehouse at Glendenning in Western Sydney for a net price of A$40m (€22m).
DXI plans to reposition and expand the warehouse of around 10,000sqm warehouse into three smaller prime grade tenancies and increase the gross lettable area to about 11,555sqm.
DXI fund manager, Gordon Korkie, said: “This acquisition represents a rare opportunity to secure a well-located industrial asset with strong value-add potential. It enhances DXI’s portfolio quality and increases our exposure to the Sydney industrial infill market.
“The opportunity to reposition the asset into a modern, flexible logistics facility with broad tenant appeal in an undersupplied market presents a compelling opportunity to deliver enhanced rental growth.”
He added the acquisition was consistent with DXI’s strategy of transforming into a focused industrial real estate investment trust by investing in infill and established middle-ring industrial precincts and further demonstrates DXI’s ability to leverage the Dexus platform to source attractive opportunities.
In line with this strategy, he said DXI intended to divest its office assets at Brisbane Technology Park in Eight Mile Plains, Queensland, as it repositions the portfolio to high-quality industrial assets. DXI is progressing a potential divestment.
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