The Dexus (ASX: DXS) share price has been in focus after the company today announced the launch of its new Dexus Strategic Investment Trust (DSIT) series, highlighted by a 25% investment in Queensland's Westfield Chermside for $683 million. Dexus also raised further equity for its opportunity fund DREP2, taking total commitments to approximately $870 million.
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What did Dexus report?
- Launched the Dexus Strategic Investment Trust (DSIT) series, seeding it with a 25% stake in Westfield Chermside for $683 million at a 5.0% cap rate.
- Dexus's platform stake in Westfield Chermside now stands at 50%, making it a key flagship investment.
- Dexus expects to co-invest approximately $170 million in DSIT1 initially, with plans to hold around $50 million long-term.
- DREP2 equity commitments raised by $390 million recently, bringing total commitments to approximately $870 million, eclipsing the original $600 million target.
- The Westfield Chermside transaction is expected to be broadly neutral to Dexus's AFFO and lift gearing by about 1.3%.
What else do investors need to know?
The additional 25% stake in Westfield Chermside strengthens Dexus's presence in Australia's retail property space, locking in exposure to one of the country's top-performing shopping centres in a high-growth catchment. The DSIT structure offers third-party investors new options for accessing quality local assets, expanding Dexus's funds management reach.
On the opportunity fund side, DREP2 now stands as one of Australia's largest diversified real estate opportunity funds, offering Dexus and its investors flexibility for future acquisitions. The $200 million co-investment from a new fund investor can be deployed alongside DREP2, highlighting strong ongoing demand for alternative real estate strategies.
What did Dexus management say?
Ross Du Vernet, Dexus Group CEO & Managing Director said:
Our Funds platform provides investors with access to high-quality assets across multiple strategies that align with their specific investment objectives. By working closely with our investment partners, we're able to deliver compelling opportunities and continue to expand our platform offering.
What's next for Dexus?
Dexus is targeting the introduction of further third-party equity into DSIT1 during FY26, ultimately reducing its own stake in the trust while expanding its platform offering. The launch of new funds and the success of the DREP2 equity raise position Dexus for further growth in the fast-evolving Australian real estate market.
Looking ahead, investors should note the ongoing APAC Supreme Court proceedings have seen a rescheduling of mediation to March 2026, with the hearing set for April 2026. Dexus says it remains committed to resolving the matter in the best interest of all clients.
Dexus share price snapshot
Over the past 12 months, Dexus shares have risen 3%, matching the S&P/ASX 200 Index (ASX: XJO).
