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DEXUS — Capital/Financing Update 2009
Dec 23, 2009
64807_rns_2009-12-23_e106bf81-d171-492b-a84b-ea05fd41d652.pdf
Capital/Financing Update
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24 December 2009
DEXUS Property Group (ASX: DXS) announces US property sales of US$177 million
DEXUS today announced the completion of US property sales totalling approximately US$177 million, as part of the A$600m property sale program announced in April 2009. These sales are in addition to the A$115m of Australian property sales completed since 30 June 2009.
Commenting on the US property sales, Chief Executive Officer, Victor Hoog Antink said: “These transactions substantially complete the US stage of the property sale program and commence the process of repositioning our US portfolio towards our four preferred markets on the West Coast. These property sales, which take our US portfolio footprint from 21 to 17 markets, represent the first plank in the implementation of our US strategy.”
The properties sold were selected for disposal based on future income and capital risk and location, in line with DEXUS Group strategy to exit non-core markets.
The sales prices reflect an average discount to June 2009 book value of 17% and an average passing yield of 9.4% with proceeds used to repay debt. It is expected, on a preliminary unaudited basis, that the remainder of the US portfolio will experience a decrease in valuation of between 9 and 10% at 31 December 2009.
The volume pricing and timing of these sales are in line with our expectations when the sales program was announced in April 2009. Consequently, the impact of these assets sales on earnings are in line with those detailed in the 2010 financial year estimates announced in August 2009.
Details of the US properties sold are outlined in Attachment A.
For further information contact:
Media Relations Investor Relations: Emma Parry (02) 9017 1133/0421 000 329 Daniel Rubinstein (02) 9017 1336/0466 016 725 Susan Attwood (02) 9017 1136/0434 561 249 Karol O’Reilly (03) 8611 2930/0405 134 856
About DEXUS
DEXUS is one of Australia’s leading diversified property groups specialising in world-class office, industrial and retail properties with total assets under management of $13.5 billion in Australia, New Zealand, North America and Europe. In Australia, DEXUS is the number 1 owner/manager of office, number 3 in industrial and a leading manager and developer of shopping centres.
DEXUS is committed to being a market leader in Corporate Responsibility and Sustainability and has been recognised as one of the Global 100 Most Sustainable Corporations at the World Economic Forum in Davos and recently achieved listing on the DJSI World and Asia Pacific Indexes. www.dexus.com
DEXUS Funds Management Ltd ABN 24 060 920 783, AFSL 238163 as responsible entity for DEXUS Property Group (ASX: DXS)
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Attachment A
US Property Sales
| US Property Sales | ||||
|---|---|---|---|---|
| Assets sold | Location | Jun-09 | Sale | Sale rationale |
| Book value | Price | |||
| Portfolio 1 sales | ||||
| Highlands Parkway | Atlanta | 11.1 | 8.0 | Substantial |
| Stone Mountain | Atlanta | 5.5 | 4.0 | market exit |
| O'Hare | Chicago | 18.0 | 15.7 | Exit market |
| Lake Forest Drive | Cincinnati | 10.4 | 9.5 | Short WALE |
| Bradley Lane | Dallas | 2.1 | 1.9 | Sub-scale asset |
| Airline Drive - 455 | Dallas | 2.8 | 2.1 | management |
| East Encanto Drive | Phoenix | 5.0 | 4.5 | intensive |
| Twin Creeks Drive | Columbus | 4.7 | 3.8 | |
| Turnpike Distribution Center | Miami | 19.3 | 15.2 | Exit market |
| West Palm Beach | Miami | 12.4 | 10.1 | |
| Total | 91.3 | 75.0 | ||
| Portfolio 2 sales | ||||
| Nokes Blvd | Northern Virginia | 42.5 | 33.0 | Specialised |
| Beaumeade Telecom | Northern Virginia | 35.0 | 28.0 | Data centre assets |
| Beaumeade land | Northern Virginia | 2.3 | 2.0 | Vacant land |
| Total | 79.8 | 63.0 | ||
| Individual property sales | ||||
| Cahill Road | Minneapolis | 2.4 | 2.4 | Attractiveprice |
| Commerce Park | Charlotte | 6.5 | 5.3 | Short WALE |
| 10 Kenwood Circle | Boston | 8.4 | 6.5 | Exit market |
| Newton Drive | San Diego | 15.0 | 14.8 | Short WALE |
| Oak Ridge Way | San Diego | 5.6 | 5.0 | Vacant |
| Memphis Industrial | Memphis | 5.2 | 5.1 | Exit market |
| Total | 43.1 | 39.1 | ||
| Total sold assets | 214.2 | 176.9 |
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