Dexus Industria REIT has exchanged contracts to buy a warehouse in the Brisbane suburb of Narangba for $44.5 million, reflecting an initial passing yield of 5.3%. 

The 9 Boron Street property features an 11,840 sqm modern warehouse on a 36,800 sqm site, representing low site coverage of 32% and providing potential scope to add value over the medium term. 

The property is fully leased to Sandvik Australia Holdings Pty Ltd, a subsidiary of the Swedish multinational engineering company Sandvik.  

“This acquisition is consistent with our strategy and builds on the recent acquisition momentum, as we continue to leverage Dexus’s fully integrated platform to access opportunities that deliver attractive returns and future growth for investors,” said Industria Fund Manager Alex Abell.  

The REIT, which has $1.6 billion of office and industrial assets under management, also settled on its previously-announced purchase of a 33.3% interest in Jandakot Airport, Perth for $298 million. 

The Narangba transaction is expected to settle next month. 

The transaction follows Centuria Industrial REIT’s acquisition of a portfolio of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million earlier this month.

Dexus Wholesale Property Fund grows Sydney mall stake

The deal comes just days after the Dexus Wholesale Property Fund (DWPF) acquired an additional 25% interest in a Sydney shopping centre for about $410 million. 

The fund grew its stake in the Westfield Warringah Mall in Brookvale to 50%, with Scentre Group retaining ownership of the remaining 50% interest. 

The three-level shopping centre is a dominant retail centre in Sydney’s Northern Beaches and is anchored by Myer, David Jones, Big W, Kmart, Woolworths, Coles Supermarkets, Hoyts Cinema and Bunnings.  

DWPF Fund Manager Michael Sheffield said the acquisition represented relative value compared to other asset classes in a post-pandemic environment. 

“This acquisition increases DWPF’s interest in a well-performing super regional retail asset which is expected to benefit from embedded development opportunities,” he said.  

The deal is expected to settle next month. 

DWPF is an open-ended unlisted property fund that owns interests in a diversified $16 billion portfolio of office, retail and industrial properties located throughout Australia.