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  • Dexus (DXS) has reported momentum in leasing activity across its $36.5 billion office and industrial portfolio
  • The company has completed 108 leasing transactions across 46,703 square metres in its office portfolio in the March 2021 quarter, achieving an occupancy rate of 94.5 per cent
  • The company also leased 117,747 square metres of industrial space across 37 transactions, increasing occupancy to 97.8 per cent
  • Dexus recently secured approval for the merger of the roughly $5.4 billion AMP
  • Capital Diversified Property Fund with Dexus Wholesale Property Fund (DWPF)
  • Dexus’ group development pipeline now stands at $11.5 billion of which $6.1 billion sits within the Dexus portfolio and $5.4 billion within third-party funds
  • On the market today, DXS is up 0.54 per cent and is trading at $10.26 per share

Dexus (DXS) has reported momentum in leasing activity across its $36.5 billion office and industrial portfolio.

The company has completed 108 leasing transactions across 46,703 square metres in its office portfolio in the March 2021 quarter, achieving an occupancy rate of 94.5 per cent.

“It is pleasing to see momentum in leasing activity across our CBD office markets tenant enquiry and activity across our office portfolio has been strong particularly for smaller tenancies, and larger occupier briefs are starting to emerge,” Dexus CEO Darren Steinberg said.

“The significant number of leasing transactions completed during the quarter is encouraging and highlights the demand for quality workspace in well-located CBD assets,” he continued.

The company also leased 117,747 square metres of industrial space across 37 transactions, increasing occupancy to 97.8 per cent.

The company has been busy over the past quarter, with it recently securing approval for the merger of the roughly $5.4 billion AMP Capital Diversified Property Fund with Dexus Wholesale Property Fund (DWPF).

The company also raised $125 million of new equity for Dexus Healthcare Property Fund in the quarter and established the Mercatus Dexus Australia Partnership (MDAP) joint venture with Mercatus Co-operative.

Dexus and Frasers Property Australia lodged plans during the quarter with City of Sydney for the development of approximately 130,000 square metres of workspace space across two premium office towers at Central Place Sydney.

“The resilience in values for quality assets has also provided us with the confidence to investigate opportunities to allocate capital, using our balance sheet to enhance prospects for driving growth,” Steinberg said.

“We are seeing opportunities across the various asset classes of industrial, healthcare and office.”

North Shore Health Hub reached practical completion in March 2021, which the company said will provide “a high-quality healthcare facility integrated into the North Shore Hospital precinct”.

Dexus’ group development pipeline now stands at $11.5 billion of which $6.1 billion sits within the Dexus portfolio and $5.4 billion within third-party funds.

“Our diversified property platform has had a busy start to the calendar year,” Steinberg said.

“Moving forward, we will continue to execute on our strategic initiatives which include increasing the resilience of portfolio income streams, expanding and diversifying the funds management business, and progressing the development pipeline to drive superior risk-adjusted returns for investors,” he added.

“With the Australian economy in recovery mode, we are optimistic about the opportunities that are before us,” he concluded.

On the market today, DXS is up 0.54 per cent and is trading at $10.26 per share at 12:17 pm AEST.

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