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DEXUS raises $95m from sale

Friday, 30 Sep 2016

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DEXUS Property has raised $95 million through the sale of a half share of its site at 36 George Street, Burwood, as part of its ongoing strategy to sell down exposure to non-core assets.

The DEXUS Office Partnership owns 100 per cent of the property. The Canada Pension Plan Investment Board (CPPIB) has a 50 per cent interest in the partnership with DEXUS owning the other 50 per cent interest.

It was sold through Savills to a local private investor.

The funds will be used for further acquisitions across the group's portfolio.

It follows a rash of office divestments with Charter Hall selling five properties across the country in a portfolio valued at about $256 million through CBRE, Savills and Colliers International.

Charter Hall is also selling a swath of industrial and logistics centres around the country through JLL and Colliers International, worth about $500 million.

Brookfield Property Partners is also said to be looking at selling close to $1.5 billion of office assets in Perth and Melbourne.

DEXUS chief executive Darren Steinberg said the transaction was consistent with the strategy of divesting non-core assets and "reflects our continued focus on enhancing value for our investors and capital partners".

"While there is future development opportunity at the site, we have made the decision to capitalise on strong current investor demand and DEXUS's share of the gain on sale will flow through to our net tangible assets," Mr Steinberg said.

The sale follows more than $930 million of property divestments completed or exchanged by DEXUS in the 2015 financial year.

Mr Steinberg reiterated the DEXUS guidance for the year to June 2016 for 5.5 to 6 per cent growth in funds from operation per security.

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