28 Oct 2019

Response to Grocon media release

Response to Grocon media release

Dexus provides the following response in relation to a Grocon media release issued on Friday 25 October 2019, relating to the appointment of a Voluntary Administrator for two Grocon Group subsidiaries:

  • Grocon Constructors (Qld) Pty Ltd

  • Grocon Constructors (Vic) Pty Ltd

Statements within the Grocon media release are factually incorrect and Dexus provides the following information for clarification.

  • Grocon has had debts outstanding to Dexus and a funds management partner for more than three years relating to a lease of premises at 480 Queen Street, Brisbane.

  • Grocon entered into several binding agreements to repay the debt owed and had not complied with these, despite repeated requests to do so and Dexus granting extensions to the scheduled payment dates.

  • Dexus issued statutory demands on Grocon seeking to have the debt paid and Grocon challenged these in court alleging abuse of process. It should be noted that Dexus did not commence proceedings against Grocon.

  • Dexus is following, and intends to continue to follow, the court’s direction (next hearing is scheduled before the Federal Court of Appeal on 22 November 2019). Dexus expects judgment to be handed down soon after the hearing.

The outcome of this process has no negative impact on Dexus’s market guidance1 for the 12 months ending 30 June 2020 to deliver distribution per security growth of circa 5%.

 1. As referred to in Dexus’s September 2019 quarter update released to the Australian Securities Exchange on 23 October 2019.

 

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