Dexus Industria REIT agrees $47.5m purchase of Melbourne warehouses
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The news: Dexus Industria REIT has agreed to buy two freehold industrial assets in the Melbourne suburb of Dandenong South for a combined price of $47.5 million.
The context: The company said both assets are modern, high-clearance warehouses with strong tenant covenants, with connectivity via Eastlink and Dandenong-Valley Highway.
The assets are located in the Melbourne's south-east industrial precinct which is positioned to benefit from the country's lowest industrial vacancy rate at 1.3%, the group said, with "robust tenant demand and constrained supply".
The properties are fully leased with a blended weighted average lease expiry of 4.8 years. The deal is expected to settle at the end of this month.
Dexus Industria REIT reiterated its FY26 guidance for funds from operations of 17.3 cents per security and distributions of 16.6 cents per security.
What they said: "This transaction reflects successful redeployment of capital following the divestment of Brisbane Technology Park, reinforcing [Dexus Industria REIT's] evolution into a focused industrial REIT," said Jason Weate, the company's head of listed funds.
"The acquisitions present a compelling opportunity to secure two high-quality assets in a core Melbourne location, enhancing portfolio income resilience and offering strong rental growth potential, driven by material reversionary upside and favourable demand-supply dynamics."
The source: ASX
