From Brisbane to Japan, real estate is rocking this week. DEXUS Property Group (ASX: DXS) and its wholesale property fund announced a $544 million joint acquisition of a soon-to-be-developed 55,561-square-metre office building in Brisbane’s CBD.
The 50% interest is expected to deliver a 10.3% unlevered 10-year internal rate of return, and will contribute significantly to DEXUS’s office portfolio strategy. With this new purchase, the company’s office portfolio will clock in at $1.9 billion, with 93% allocation to prime grade assets.
“This strategic office investment for DEXUS and DWPF as capital partners is an excellent outcome for the Group and enhances the value of the Group’s office portfolio,” said DEXUS CEO Darren Steinberg in a statement “It also leverages our exposure to quality real estate in the core Brisbane CBD office market, adding to 123 Albert Street and 12 Creek Street.”
Heading north down under, Goodman Group (ASX: GMG) announced this week that it has acquired a site in Nagoya, Japan that it plans to develop into a 51,000-square-metre logistics and distribution facility. The company has already secured a 15-year pre-lease for 53% of the space, and “strong customer interest” has been registered for the remaining property.
Goodman is no stranger to Japan, as CEO Greg Goodman points out: “This acquisition is the fourth project in the Goodman Japan Development Partnership, a 50/50 JV with the Abu Dhabi Investment Council… Customer demand in Japan for modern logistics remains strong and we see significant opportunity given the favourable market dynamics, our strong local platform and the quality of our global customer and capital partner relationships.”
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