Highlights

  • Dexus has exchanged contracts to sell three wholly owned office properties for a combined gross sale price of A$715 million.
  • The latest transactions take the company's divestment program beyond its previously announced target of approximately A$2 billion ahead of the end of FY27.
  • Settlement is expected in October 2026, subject to customary conditions including FIRB approval.
  • Around 67% of the sale proceeds will be received at settlement, while the remaining 33% will be deferred for 30 months and attract a 6.25% annual coupon.
  • The transaction is expected to reduce Dexus's pro forma look-through gearing by around two percentage points upon settlement.

Dexus (ASX: DXS) has announced the sale of three wholly owned office properties for a combined gross consideration of A$715 million, allowing the real asset group to exceed its previously announced divestment target of approximately A$2 billion ahead of the end of FY27. The transactions form part of the company's ongoing capital management strategy and are expected to improve liquidity while supporting a lower gearing position following settlement.

During the morning session on 27 July 2026, Dexus shares were trading 0.98% higher at AUD 5.70. Despite today's movement, the stock remains down 18.06% over the past year.

Dexus is one of Australasia's integrated real asset groups, managing a portfolio of real estate and infrastructure assets valued at A$51.5 billion. Through its listed portfolio and funds management platform, the company invests across office, industrial, retail, healthcare, infrastructure and alternative asset sectors while also managing a significant real estate development pipeline.

Latest Transactions Push Divestment Program Beyond Target

Dexus confirmed that it has exchanged contracts for the sale of three wholly owned office assets located in Sydney and Brisbane for a combined gross sale price of A$715 million.

With these transactions, the company has exceeded its previously announced objective of completing approximately A$2 billion of divestments by the end of FY27, achieving the milestone ahead of schedule.

According to Group Chief Executive Officer and Managing Director Ross Du Vernet, the latest sales fulfil the commitment first outlined in 2024, while demonstrating the company's disciplined approach to portfolio and capital management.

Management stated that the transactions also reflect the company's focus on initiatives intended to demonstrate and unlock value while maintaining liquidity.

Three Office Buildings Included in the Sale

The transaction includes the sale of 30-34 Hickson Road, 36 Hickson Road and 123 Albert Street.

The first asset, 30-34 Hickson Road in Sydney, is an A-grade office building located within the Sydney CBD. As at 31 December 2025, the property had occupancy by area of 41% and a weighted average lease expiry (WALE) by income of 0.7 years.

The second property, 36 Hickson Road in Sydney, is a heritage office building also situated in the Sydney CBD. At 31 December 2025, occupancy stood at 89%, with a WALE of 1.1 years.

The third asset, 123 Albert Street in Brisbane, is a Premium-grade office building located within the Brisbane CBD. It reported occupancy of 96% and a WALE of 5.5 years as at 31 December 2025.

Together, the three assets have been sold for a combined gross consideration of A$715 million.

Sale Pricing Reflects Recent Independent Valuations

Dexus stated that the combined sale price aligns with the independent property valuations undertaken as at 30 June 2026.

The transaction value also represents approximately a 4% discount to the combined book values recorded at 31 December 2025.

Management noted that the completed transactions demonstrate the company's ability to secure liquidity through asset sales while executing its broader capital management objectives.

The company also highlighted that the achieved pricing represented a significant premium to the value implied by the Dexus security price.

Settlement Structure Includes Deferred Consideration

Settlement of the transaction is expected to occur during October 2026.

Completion remains subject to certain customary conditions, including approval from Australia's Foreign Investment Review Board (FIRB).

Under the agreed transaction structure, approximately 67% of the total sale proceeds will be received at settlement.

The remaining balance, representing around 33% of the consideration, will be deferred for 30 months and will earn a coupon of 6.25% per annum over the deferral period.

The company outlined this payment structure as part of the announced transaction terms.

Capital Management Remains a Key Focus

Dexus indicated that proceeds received at settlement are expected to strengthen its balance sheet.

According to the company, settlement of the transaction would reduce its pro forma look-through gearing by approximately two percentage points.

The gearing calculation includes subordinated notes together with adjustments for cash and debt within equity-accounted investments while excluding Dexus's share of co-investments held through pooled funds.

Management described the latest transactions as consistent with its disciplined approach to capital management and delivering commitments previously communicated to investors.

Portfolio Continues to Span Multiple Real Asset Sectors

Beyond the announced property sales, Dexus continues to manage one of Australasia's larger diversified real asset platforms.

The group manages a combined real estate and infrastructure portfolio valued at A$51.5 billion.

Its listed portfolio accounts for A$15.3 billion and includes investments across office, industrial, retail, healthcare, infrastructure, alternatives and other real asset sectors.

In addition, Dexus manages A$36.2 billion through its funds management business, which provides third-party investors with access to diversified and sector-specific real asset investments.

The company also maintains a real estate development pipeline valued at A$11.5 billion, supporting future portfolio growth across both its listed and funds management businesses.

Long-Term Strategy Extends Beyond Asset Ownership

Dexus describes itself as a fully integrated real asset group with capabilities spanning investment, funds management, development and asset management.

The company stated that its platform is designed to connect institutional capital with quality real asset opportunities while supporting long-term value creation.

Its sustainability strategy focuses on three priority areas—Customer Prosperity, Climate Action and Enhancing Communities.

Dexus also noted that its investor base comprises more than 35,800 investors across 26 countries.

Drawing on more than four decades of experience in real asset investment and development, the company continues to focus on capital management, risk management and long-term portfolio performance.

What Could Investors Be Watching Next?

The latest announcement marks an important milestone in Dexus's capital management strategy, with the company exceeding its previously announced divestment target ahead of schedule. Investors are likely to monitor completion of the A$715 million transaction, the expected reduction in gearing following settlement, progress on portfolio optimisation initiatives and how proceeds from the asset sales support the group's broader capital allocation strategy.