Dexus kicks off new fund series with $683m Westfield acquisition
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The news: Property investor Dexus has launched a new fund series, Dexus Strategic Investment Trust (DSIT), starting with the acquisition of a 25% interest in Scentre Group's Westfield Chermside in Brisbane for $683 million.
The numbers: The deal with Scentre will seed the first fund in the new series, named DSIT1. Dexus will initially co-invest around $170 million into the fund, equivalent to a 49% interest, with third party investors contributing the remaining amount.
The investment follows Dexus Wholesale Shopping Centre Fund's acquisition of a 25% interest in Westfield Chermside in July, bringing Dexus' platform stake in the asset to 50%.
Scentre, which retains a 50% stake in Westfield Chermside, said it will invest $50 million in the new Dexus fund as a foundation investor. Its investment is expected to be temporary.
The context: Westfield Chermside is the country's second-largest regional shopping centre by both sales and gross lettable area.
Settlement is expected to take place on 23 December. Dexus said the initial transaction is expected to be broadly neutral to its annual funds from operations.
