8 May 2018
Sale of trading property secures FY19 trading profits
Dexus today announced the sale of its trading property at 32 Flinders Street, Melbourne to contribute to FY19 trading profits.
32 Flinders Street, Melbourne is an eight-level car parking facility for 546 cars. The site has an approved planning permit for the development of a mixed-use 47-level tower on Flinders Street and a 14-level tower on Flinders Lane. Dexus sold the site for $87.1 million1, which is expected to contribute circa $49 million pre-tax to Dexus’s trading profits for FY19.
This follows the announcement last week that Dexus had entered into conditional heads of agreement to sell 140 George Street, Parramatta to the Dexus Office Partnership. When combined with the trading profits received from the sale of the completed office development at 105 Phillip Street, Parramatta, Dexus expects to achieve its FY18 trading profit target of $35-40 million net of tax.
Dexus Chief Executive Officer, Darren Steinberg said: “These latest sales continue our successful track record of securing trading profits from various types of properties. The value add strategies leading to the sale of 13 opportunities identified for trading profit purposes have delivered to Dexus Security holders an average unlevered IRR of circa 30% and more than $300 million2 of trading profits since 2012.”
Further information relating to Dexus’s final trading profits secured for FY18 and targeted trading profits for FY19 will be released to the Australian Securities Exchange as part of Dexus’s FY18 annual results announcement on 15 August 2018.