Dexus has secured a 25% interest in a regional shopping centre in Australia from Scentre Group for A$683m (€382m).
The stake in Westfield Chermside in Brisbane, Australia’s second-largest regional shopping centre by sales and gross lettable area, is earmarked for the Dexus Wholesale Shopping Centre Fund (DWSF).
The fund is upgrading its assets and divesting smaller ones, with Dexus committing an additional A$170m to bring its total investment to A$300m.
Michael Sheffield, Dexus executive general manager, funds management, said: “This exclusive off-market transaction leverages our established relationship with Scentre Group to secure a market-leading asset for DWSF. Dexus’s co-investment underscores its conviction in the fund’s strategy and future potential.”
Kirrily Lord, Dexus executive general manager, retail, said: “Westfield Chermside’s scale, performance metrics and community integration make it an exceptional addition to our retail platform, delivering both immediate performance and long-term value creation.”
Dexus said it was also supporting further initiatives, including changes to the fee structure and fund liquidity to ensure the fund maintains investor appeal and performance.
Dexus also announced the sale of two properties, located in Brisbane and Sydney, with combined proceeds of A$153.5m, in which Dexus’s share is A$92.8m. The bigger of the two assets is at Chester Hill in outer Sydney, which was sold A$121.5m, in which Dexus has a 50% share alongside its opportunistic fund, Dexus Real Estate Partnership 1.
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