Dexus Real Estate Partnership Series
Available for
Institutional and Wholesale Investors
- DREP2 - Open for investment
- DREP1 - Closed for investment
- Videos
Explore this fund
Capitalising on market disruption and dislocation
Dexus Real Estate Partnership 2 (DREP2) is a closed-end fund targeting unlisted Australian real estate opportunities. This is the second in the DREP fund series, following DREP1 which launched in 2021.
The Fund aims to deliver enhanced returns from investment in Australian real estate sector opportunities, investing throughout the capital structure in situations ranging from distress to growth, with potential diversification across the major sub-sectors of the Australian real estate market.
Crucial to delivering on this objective, the Fund’s positioning is to compete for investment opportunities in the Australian market, as a provider of both capital and capability, drawing upon Dexus’s large-scale, integrated real estate platform.
Why now, why DREP2
Right strategy, right time, right platform
Opportune time in the cycle to invest
The best vintages are shown to follow periods of dislocation.
First two investments secured
Active pipeline of attractive risk-adjusted return opportunities.
Strong fundraising momentum
Closing in Q3 2025.
Capital and capability
DREP2 is the only opportunistic fund embedded within a fully integrated real estate platform focused on the Australian market.
Case study
Transforming a Brisbane office building into circa $500 million student accommodation facility
DREP2’s first transaction in late 2024 was aquiring a 47.5% economic interest in the redevelopment of 41 George Street in Brisbane, Queensland – a 27-storey, B-grade commercial office building which will be repositioned into a Purpose-Built Student Accommodation (PBSA) facility.
Brisbane reflects the broader student accommodation sector across Australia where the current PBSA pipeline of 7,770 new beds due to come online by 2026 will not meet future demand. As one of Australia’s largest on-campus student accommodation investment manager, Dexus is well placed to source and match product to the local market dynamics.
41 George Street occupies a high-profile, elevated site and has unique attributes for conversion to student accommodation, boasting excellent connectivity to university campuses as the closest student housing to Queensland University of Technology and two blocks from the future Griffith University CBD campus.
The investment was attractive to the fund as limited intervention is required to the building facade, structure and many services, negating the need for planning approval, mitigating construction risk and contributing to an attractive target yield on cost.
On announcement of the investment, Dexus Group CEO & Managing Director, Ross Du Vernet, said, “This transaction demonstrates our ability to leverage the broad set of capabilities across our platform to create value for clients and investors. This includes special situations investing, office development and refurbishment, and the infrastructure team’s deep understanding of the Australian student accommodation sector".
Who is this fund suited to?
The Fund remains open to institutional and wholesale investors (via a Dexus-managed dedicated feeder fund) and is currently scheduled to close in September 2025.
The DREP Series is only available to investors who qualify as a “wholesale client” within the meaning of the Corporations Act 2001 (Cth). There are multiple ways for an investor to qualify as a wholesale client including, for example, satisfying the definition of a “professional investor” or providing proof of their wholesale client status in the form of a certificate issued by a qualified accountant within the preceding 2 years stating that the investor meets the prescribed gross income (A$250,000 p.a. in the previous two financial years) or net assets (A$2.5 million) level.
Prospective investors should refer to the Private Placement Memorandum of the fund (or feeder fund offer document) for further information, including about risks of which you should be aware.
Your real asset partner of choice
Spanning infrastructure and real estate, real asset investing offers a variety of benefits for your portfolio, including diversification benefits, reduced volatility compared with equities and enhanced risk-adjusted returns for income-oriented investment portfolios.
With over 40 years of experience in real asset investment, funds management, asset management and development, Dexus has a proud history of creating long-term value for investors. It is our deep local sector expertise and active management approach that sets us apart, allowing us to anticipate local market and sector needs and drive long-term performance at every stage of the investment lifecycle.
DREP1 - first fund in the series
Closed for investment
DREP1 was the first fund in the Dexus opportunistic series, targeting a net equity IRR of 15% p.a., the same target IRR as DREP2. Capital commitments exceeded raising target.
$475m
of equity capital commitments
106%
Deployment as at January 2025
15
Investments secured
Explore our latest DREP video content
Disclaimers and notes
Jump to next sectionFOOTNOTES
* The target return is not a guarantee, forecast or prediction. There can be no assurance that the funds will meet this target return.
DISCLAMER AND IMPORTANT INFORMATION
All data as at 31 March 2025.
All information contained on this website (“Information”) is subject to change without notice. While every care has been taken in the preparation of the Information, to the extent permitted by law, Dexus (ASX DXS), its related body corporates and each of their respective directors, officers and employees do not make any representation or warranty, express or implied, as to the accuracy, currency, reliability or completeness of any statement in it, including, without limitation, any forecasts, and do not guarantee the repayment of capital, or the performance of or any particular rate of return for the Dexus fund referred to on this website. Past performance is not a reliable indicator of future performance.
The Information has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the Information, and seek professional advice, having regard to their objectives, financial situation and needs.
Dexus Wholesale Management Limited (ACN 159 301 907, AFSL No. 426801) is the trustee of both Dexus Real Estate Partnership 1 and Dexus Real Estate Partnership 2 (the “Fund”), and the issuer of stapled securities in both of them. The Fund comprises two stapled trusts, DREP2 Active Trust and DREP2 Passive Trust. The Trustee is a wholly-owned subsidiary of Dexus (ASX: DXS).
Prospective investors should refer to the Private Placement Memorandum of the Fund for further information, including about risks of which you should be aware. The Information should not be considered to be comprehensive or to comprise all the information which a potential investor may require in order to determine whether to invest in the Fund.
The Information is not intended for distribution or use in any jurisdiction where it would be contrary to applicable laws, regulations or directives and does not constitute a recommendation, offer, solicitation or invitation to invest.
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