Dexus shares rise on office property sales
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More news: Dexus shares climbed on the ASX after the property fund manager agreed to sell two office properties for a combined $443.2 million.
Dexus shares were up 1.5% to $7.10 by 12:35pm AEDT while the real estate sector fell 0.24%.
Dexus to sell two office properties for $443 million
The news: Property investor Dexus has agreed to sell two office properties for a combined sale price of $443.2 million.
The numbers: The deal includes the $229.3 million sale of a boutique heritage office building in Sydney’s Pyrmont, and a $213.9 million sale of an office building in Brisbane CBD.
Dexus shares were up 1% to $7.06 in early trading on the ASX.
The context: Dexus said its ownership interest in the deals amounted to $336.3 million. The combined sale price is broadly in line with the book values, amounting to a 0.8% weighted average discount to their value as on 30 June.
The sale proceeds will reduce Dexus’ proforma gearing by 1.5 percentage points, and contribute towards the $2 billion in divestments earmarked across FY25 to FY27, it said.
The property fund manager has faced a challenging period amid a rapid increase in interest rates that has lifted Dexus’ cost of debt and had a material impact on portfolio valuations.
The source: ASX announcement
