Dexus has created value through generating trading profits since 2010.

Dexus approach

  • 94-106 Lenore Drive, Erskine Park is an industrial property where Dexus undertook the following steps to realise value:
    • acquired the site in a well-located western Sydney industrial precinct at the end of 2010
    • achieved planning approval for subdivision of the site
    • subdivided the site and sold the two smaller land parcels
    • designed and developed a 21,000 square metres property on a speculative basis
    • leased to DB Schenker, a global logistics company
    • sold the facility in 2012, delivering a trading profit of $4.5 million and an IRR of 22.3%
    • Dexus also acquired office properties for repositioning and identified industrial properties in its existing portfolio which could be packaged as change of use

Value created

  • Delivered trading profits of $60 million (before tax) since 2010 through the repackaging and sale of seven properties
  • Delivered $42.6 million of trading profits (after tax) in FY15 with approximately $60 million (post tax) secured for FY16, of which all identified properties have already settled
  • Dexus’s trading profit target is expected to be approximately $20 million pre-tax per annum over the long term