Sale of 201 Elizabeth Street Sydney contributes to trading profits
9 August 2019
Sale of 201 Elizabeth Street, Sydney contributes to FY20 and FY21 trading profits
Dexus today announced that it has reached agreement to sell 201 Elizabeth Street, Sydney, in which it owns a 50% interest, contributing to future trading profits.
Dexus has exchanged contracts to sell a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell its remaining 25% interest in late 2020 for a further $157.5 million
The sale is expected to contribute circa $34 million in trading profits pre-tax in FY20 and to contribute a further circa $34 million in trading profits pre-tax in FY21 in the event either option is exercised.
Darren Steinberg, CEO of Dexus said: “We are pleased to have achieved an excellent outcome for our investors without taking on any development risk. We added significant value by securing approval for a State significant development application on the site and expect to recycle the capital realised from the divestment into higher return opportunities.”
Further details relating to Dexus’s guidance for FY20 trading profits will be provided at its 2019 annual results which will be released on Wednesday, 14 August 2019.