DEXUS — Capital/Financing Update 2021

Mar 21, 2021

Dexus (ASX: DXS)

ASX release

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22 March 2021

Dexus establishes new JV to acquire interest in 1 Bligh Street, Sydney

Dexus today announced the establishment of the Mercatus Dexus Australia Partnership (“MDAP”) joint venture with Mercatus Co-operative Limited (“Mercatus”). MDAP has exchanged contracts to acquire a 33.33% interest in 1 Bligh Street, Sydney, for $375 million[1] .

Mercatus will hold an indirect 90% share in MDAP, with Dexus holding the remaining 10%. MDAP is structured to enable additional office acquisitions in the future. Dexus is the investment manager of the JV and post-acquisition will continue to manage 1 Bligh Street.

The establishment of MDAP and acquisition of a further interest in 1 Bligh Street (increasing Dexus’s effective ownership interest to 36.66%) is consistent with Dexus’s strategic initiative of expanding and diversifying the funds management business while progressing the objective of being the wholesale partner of choice.

Dexus CEO, Darren Steinberg said: “This transaction demonstrates the ongoing strength of demand from international institutions for high quality Australian office asset exposure under Dexus platform management.”

Dexus EGM, Funds Management, Deborah Coakley added: “We are pleased to have been able to work with Mercatus in securing their first direct real estate investment in Australia, while using our internal capabilities to close this transaction.”

1 Bligh Street is an iconic premium-grade, 29 storey building located in Sydney’s Central Business District. It is well located in the financial core with good access to transport and other key amenities. The property is 99.5% occupied with a weighted average lease expiry of 5.4 years as at 31 December 2020. Major customers include Clayton Utz, Bloomberg Australia Pty Ltd and the Commonwealth of Australia.

Settlement of the acquisition is subject to FIRB approval, with Dexus’s interest funded from existing debt facilities.

Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited.

For further information please contact:

or further information please contact:
Investors	Media
David Yates	Elle Twight
Executive General Manager, Investor Relations	Communications and Corporate Affairs Manager
+61 2 9017 1424	+61 2 9017 1337
+61 418 861 047	+61 468 552 993
david.yates@dexus.com	elle.twight@dexus.com

About Dexus

Dexus is one of Australia’s leading real estate groups, proudly managing a high-quality Australian property portfolio valued at $32.1 billion. We believe that the strength and quality of our relationships will always be central to our success and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $16.5 billion of office and industrial properties. We manage a further $15.6 billion of office, retail, industrial and healthcare properties for third party clients. The group’s $11.4 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.6 million square metres of office workspace across 51 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by more than 29,000 investors from 24 countries. With 36 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors. www.dexus.com

Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS) Level 25, 264 George Street, Sydney NSW 2000

1 Reflecting the acquisition price for the 33.33% interest in 1 Bligh Street (of which Mercatus will hold a 90% share and Dexus a 10% share) and excludes acquisition costs, other costs and purchase price adjustments.