Australian real estate firm Dexus to sell three assets for $255 mln (updated)

Dexus

27/06/2024 02:28

(Adds share moves in paragraph 2, details in paragraphs 3-6)
       June 27 (Reuters) - Australian real estate firm Dexus
 DXS.AX  said on Thursday it would sell three assets, including
its 25% stake in Sydney office building 5 Martin Place, for
combined proceeds of A$383.2 million ($254.67 million).
    Shares of the company fell as much as 4.1% and were on track
for their worst day since Oct. 25, 2023.
    Dexus said its 25% interest in 5 Martin Place was valued
A$148.1 million. The stake is part of a 50% holding jointly held
with Canada Pension Plan Investment Board, according to local
media reports.
    The property is a premium grade office building with a
weighted average lease expiry of 2.9 years and occupancy of 97%,
as of May 31.
    Dexus said it would use the proceeds initially to repay its
debt.
    Last week, the company flagged a decline in the book value
of its portfolio for the six months to June-end, indicating an
acceleration in the downturn in office real estate.     

($1 = 1.5047 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by
Subhranshu Sahu)
 ((Shivangi.Lahiri@thomsonreuters.com;))