The sale of two trading properties in FY17 is expected to contribute approximately $37 million pre-tax to the FY17 trading profit target of $45-50 million (post-tax).

57-65 Templar Road, Erskine Park

Approach

• Acquired the 6.25 hectare Erskine Park site in 2011
• Secured development and planning approvals for the development of a 30,115 square metre multi-tenanted estate comprising two freestanding buildings • Completed construction, fully leased the estate and then marketed for sale

Outcome

• Sold Erskine Park in July 2016 for gross sale proceeds of $50 million, which is expected to contribute $12 million pre-tax to FY17 trading profits  

77-99 St Hilliers Road, Auburn

Approach

• 79-99 St Hilliers Road, Auburn is an older industrial estate spanning 3.5ha located 16km west of the Sydney CBD • Demand for the older format warehouse and office product was declining • In 2016 Dexus identified a higher and better use, being bulky goods which would increase the site’s relevance to the market and capitalise on its prominent location
• Dexus lodged a DA including a subdivision proposal enabling it to maximise value for the site

Outcome

• In August 2016, Dexus announced that it has successfully exchanged contracts1 to sell the completed development to an owner-occupier
• Gross sale proceeds of $65.0 million are expected to contribute approximately $25 million pre-tax to FY17 trading profits

1. The sale is subject to the purchaser receiving FIRB approval.