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DEXUS Property Raises $450m for Office and Retail Property

DEXUS Property Raises $450m for Office and Retail Property
Apr 22, 2015 By Imran Valibhoy

DEXUS Property Group (ASX:DXS) has raised $450m from investors to buy a large office and retail complex in Brisbane. The Waterfront Place is being sold by Future Fund and Stockland and is valued around $630m. The funds will be raised through a fully underwritten institutional placement with approximately 54.6m new stapled securities at $7.32 per security. The new securities will be issued on 28 April 2015 and will rank equally with existing shares. Part of the funds will be raised from a non-underwritten security purchase plan to eligible security holders at $7.32 per security, which is the same price as the institutional placement. For the non-underwritten securities, DEXUS is aiming to raise $50m of the $450m total. If the demand exceeds $50m, the company will scale back the maximum amount of securities allowed per security holder.


 Brokers involved in the industry said that some of the funds raised could be set aside if DEXUS wants to purchase any of the Investa platform being offered by Morgan Stanley. The property company said it would also use some of the funds raised to keep the group’s gearing and optimum levels between 30 to 40 per cent. Deutsche Bank and Goldman Sachs are advisers on the equity raising. DEXUS chief executive Darren Steinberg commented on the deal, saying it aligned with the company’s long-term goals. “The opportunities include interests in prime grade CBD office properties, at various stages of consideration. All of the opportunities are in line with DEXUS’s strategy, and one of them is an office property in exclusive due diligence with a capital partner on a 50/50 basis.”


 Shares of the company are down 17c, or 2.25 per cent, at $7.38 per share around 3:35pm on Wednesday. DXS has advanced 11.67 per cent in the last 12 months and 5.74 per cent so far this year.

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Imran Valibhoy Author: Imran Valibhoy Apr 22, 2015

Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.

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