Dexus expands industrial property portfolio

Dexus Wholesale Property Fund (DWPF) has swooped further into the industrial property sector

By Rob McKay | October 19, 2010

Dexus Wholesale Property Fund (DWPF) has swooped further into the industrial property sector, agreeing to pick up 13 of Colonial First State’s Direct Property Investment Fund (DPIF) assets.

DPIF has 15 properties on its books, including the Myer distribution centre in Altona North and the MIAC facility near Tullamarine, while other tenants include Bonds at Minto, Mercedes-Benz Australia, DHL and Fairfax Media.

It has not confirmed which ones it will keep and DWPF will not say.

In announcing the $230 million purchase, DWPF flagged its intention to increase its industrial holdings.

Eight of the properties are in Sydney, three in Melbourne and two in Brisbane - one being in Acacia Ridge.

Twelve are developed and one is a 6.7ha development site in Richlands, Queensland.

"Our objective is to increase DWPF’s portfolio allocation to industrial property to between 10 percent and 20 percent by constructing a diversified industrial portfolio of properties primarily located near key infrastructure and employment hubs on the eastern seaboard," DWPF Fund Manager Graham Pearson says.

"The acquisition meets this aim, increasing DWPF’s allocation to industrial property to 11 percent, from 4 percent before the acquisition.

"We are securing both a portfolio of good quality, stabilised industrial properties and a pipeline of industrial development land at a level that is below our view of long term investment value.

"By making the acquisition at a low-point of the valuation cycle and holding the properties for the long-term, we are able to enhance returns to investors."

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