Dexus secured trading profits early in FY15 through the sale of 50 Carrington Street in Sydney, an identified trading property acquired for its value-add potential.
- Acquired the B-grade property for $58.5 million (excluding costs) in November 2012 which was well below replacement value and represented an acquisition capitalisation rate of 8.0%
- Added significant value over an 18 month period through refurbishment and a targeted leasing campaign, successfully increasing the property’s occupancy from 61% at acquisition to 99% and the property’s WALE from 2.2 years to 4.1 years
- Achieved a 4.5 star NABERS Energy rating in April 2014, increasing the property’s rating from 3.0 stars at acquisition following refurbishment which included sustainability upgrades
- Exchanged contracts in July 2014 to sell the property for $88 million, generating trading profits of $12 million
- A targeted leasing campaign combined with property improvements successfully repositioned 50 Carrington Street and, in turn, enhanced investor returns, demonstrating DEXUS’s ability to leverage its core capabilities to deliver trading profits