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Dexus Industria (ASX:ADI), Fund Manager, Alex Abell
Source: APN Property Group
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  • The ever acquisitive Dexus Industria REIT (ADI) has agreed to buy a 50 per cent stake in 12 Church Street, Moorebank, NSW, a last-mile logistics hub
  • The property will be bought in a joint venture with Dexus (Industria 50 per cent; Dexus 50 per cent), with Industria bearing roughly $22 million of the transaction costs
  • The acquisition includes a development opportunity that would produce approximately 34,000 square metres of multi-level storage across 15 to 20 units
  • Funds from operations (FFO) and payout guidance for FY22 remains unchanged
  • Shares are trading 0.73 per cent up at $3.46 each at 1:28 pm AEDT

The ever acquisitive Dexus Industria REIT (ADI), formerly APN Industrial REIT, announced today that it has agreed to buy a 50 per cent stake in 12 Church Street, Moorebank, NSW, a last-mile logistics hub.

The property will be bought in a joint venture with Dexus (Industria 50 per cent; Dexus 50 per cent), with Industria bearing roughly $22 million of the transaction costs, including stamp duty.

The acquisition includes a development opportunity that would produce approximately 34,000 square metres of multi-level storage across 15 to 20 units and is expected to be completed in mid-2024.

Industria’s portion of the development expenses is estimated to be around $40 million.

Industria said Moorebank was a significant last-mile logistics centre located inside the local government area that is rated fourth in Australia for online purchasing (by volume).

There is also a scarcity of quality compact units for last-mile customers such as third-party logistics providers and direct merchants. ADI claims this contributes to the development’s projected high demand.

Industria fund manager Alex Abell said the acquisition was a unique development opportunity in a sought-after last mile industrial area.

“We expect this acquisition will deliver attractive returns and drive future growth consistent with Industria’s strategy that was outlined in the fund’s recent market equity raising announcements,” he said.

“The acquisition builds on recent momentum following the agreement to acquire $598 million of assets in September 2021, as we continue to leverage Dexus’s fully integrated platform to access deal flow, and benefit from its in-house development expertise and established customer relationships.”

The acquisition will be supported by existing loan capacity. Once completed, assets with development exposure are expected to grow from six per cent to eight per cent of Industria’s portfolio. FFO and payout guidance for FY22 remains unchanged.

The acquisition is expected to close on or around October 25, 2021.

Shares were trading 0.73 per cent up at $3.46 each at 1:28 pm AEDT.

ADI by the numbers
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