23 May 2017
Sale of remaining FY17 trading property
Dexus today announced that it has conditionally exchanged contracts to sell 105 Phillip Street, Parramatta.
The property has been sold for $229 million1 to a Charter Hall joint venture at an implied cap rate of 5.3%. A portion of the proceeds will be received in May 2017 contributing to FY17 trading profits. The remaining proceeds will be received on practical completion of the development in mid-2018, contributing to FY18 trading profits.
The property has been pre-committed on a 12 year lease with Property NSW and as part of the sale agreement, Dexus is responsible for the delivering the development and will be the property manager for five years post completion. Alongside 105 Phillip Street Parramatta, other trading projects that have been sold and contribute to FY17 trading profits include 57-65 Templar Road Erskine Park (which settled on 1 July 2016) and 79-99 St Hilliers Road, Auburn (which settled on 31 January 2017).
Further details relating to trading profits will be provided at Dexus’s Annual Results to be released to the Australian Securities Exchange on Wednesday 16 August 2017.
1 Gross sales proceeds before transaction costs.