- Dexus announces the first three investments for Dexus Real Estate Partnership 1 (DREP1), a closed-end, unlisted real estate fund aimed at institutional investors
- Investments include an office building in Richmond, Victoria, a 50/50 co-investment with Dexus in industrial development at 149 Orchard Road, Chester Hill, NSW
- Also included is an industrial development in Chester Hill, NSW, and a roughly $70 million senior construction finance facility in a 50/50 co-investment with Solido Capital
- Dexus CEO, Darren Steinberg says the acquisitions reflect Dexus’ appetite for return-enhancing opportunities for the fund
Dexus announced today that the first three investments for Dexus Real Estate Partnership 1 (DREP1) had been obtained, a closed-end, unlisted Australian real estate fund aimed at institutional investors.
Investments include an office building in Richmond, Victoria, a 50/50 co-investment with Dexus in industrial development at 149 Orchard Road, Chester Hill, NSW, and a roughly $70 million senior construction finance facility in a 50/50 co-investment with Solido Capital.
The Richmond property is a 1500-square-metre development site with plans for Dexus to supervise the construction of a 10,000sqm A-Grade office complex, which is projected to be finished in 2024.
The acquisition is conditional on the seller obtaining planning permission and submitting the planning application. The asset is expected to be sold by the fund.
The Chester Hill industrial development is a 3.8-acre infill land lot in Western Sydney’s Chester Hill that allows Dexus to create a 20,000sqm small unit industrial complex.
Scheduled to be completed in 2023, the project is “positioned to benefit” on rising demand for last-mile, e-commerce-focused warehousing. The acquisition is contingent on the exercising of a put and call option in mid-2022.
The senior finance facility is provided by the Fund for the construction of a permit-approved mixed-use development project in Elsternwick, Victoria.
Building has already begun for the mostly residential project is a mostly residential project that comprises 99 apartments, four retail units, and three office suites.
The opportunity was created by Solido Capital, which also serves as the facility agent.
This inaugural joint venture with Solido Capital allows the Dexus fund to co-invest with an experienced non-bank source of credit for residential property development projects, as well as potentially get access to further credit transaction flow.
Dexus CEO, Darren Steinberg said the acquisitions reflect Dexus’ appetite for return-enhancing opportunities for the fund.
“Our funds continue to benefit from leveraging our full service platform, originating new opportunities to deliver enhanced returns,” he said.
The assets provide the fund with an attractive risk-adjusted return, Dexus executive general manager of the funds management arm Deborah Coakley.
“The fund continues to attract strong investor interest and we look forward to delivering future opportunities,” she said.