DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Acquisition/Merger
Dexus (ASX: DXS)
27 April 2021
Update in relation to the merger of DWPF with AMP Capital Diversified Property Fund
Dexus provides an update in relation to the merger of Dexus Wholesale Property Fund ("DWPF" or "the Fund") with AMP Capital Diversified Property Fund ("ADPF") following the Unitholder meetings that were held today to vote on the merger proposal.
This follows Dexus and DWPF entering into an Implementation Agreement with the Independent Board Committee of ADPF on behalf of the Responsible Entity of ADPF ("ADPF RE"), which was announced to the Australian Securities Exchange on 16 March 2021 following discussions with the ADPF RE and engagement with ADPF Unitholders over a six-month period.
Unitholders in both DWPF and ADPF have approved the merger, establishing the pathway to create an enhanced investment proposition for both sets of unitholders.
ADPF is currently a circa $5.4 billion high-quality diversified property fund that invests in the office, retail and industrial sectors. The overall sector allocation and portfolio quality is comparable to the DWPF portfolio.
The portfolio includes investments in assets such as Quay Quarter Tower, Sydney (50% interest) which is currently under construction, 309-321 Kent Street, Sydney (50% interest, with remaining 50% co-owned by Dexus), Westfield Booragoon Shopping Centre, Perth (50% interest) and Westfield Warringah Mall, Brookvale, Sydney (25% interest) along with a diversified portfolio of industrial assets.
ADPF also includes minority investments in two other AMP Capital managed wholesale funds, the AMP Capital Wholesale Office Fund ("AWOF") and the AMP Capital Shopping Centre Fund ("ASCF").
ADPF is presently subject to a meaningful volume of redemption requests from existing ADPF Unitholders. Dexus expects to satisfy the ADPF Unitholder redemption requests on a pro rata basis over an approximate 18-month period through the divestment of a number of assets.
Strategic rationale for Dexus
Darren Steinberg, Dexus CEO said: "We are pleased that both sets of Unitholders have signalled their confidence in our abilities through their support of the merger proposal and welcome the ADPF unitholders onto our platform. We will continue to execute on the Fund's investment strategy as we integrate the ADPF assets to drive performance and deliver further economies of scale from a management, procurement and leasing perspective.
The merger will expand Dexus's funds management business, further diversifying DWPF's portfolio and investor base while solidifying the Fund's position as a globally significant diversified real estate wholesale fund.
In support of the merger Dexus has agreed to contribute funding to facilitate liquidity for ADPF investors and protect DWPF from value dilution resulting from transaction costs. Specifically, these funding contributions comprise:
The merger will be accretive to Dexus's Adjusted Funds from Operations (AFFO) and Net Asset Value (NAV) in FY22. In addition, the merger will provide the opportunity to generate further upside through the active management, leasing and development of ADPF assets.
Dexus and DWPF have developed a transaction structure that addresses the needs of ADPF Unitholders seeking to redeem while maintaining the strength and liquidity of DWPF. The proposed next steps include:
For further information please contact:
Information and Explanation of the Issuer to this News:
Dexus is one of Australia's leading real estate groups, proudly managing a high-quality Australian property portfolio valued at $32.1 billion. We believe that the strength and quality of our relationships will always be central to our success and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $16.5 billion of office and industrial properties. We manage a further $15.6 billion of office, retail, industrial and healthcare properties for third party clients. The group's $11.4 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.6 million square metres of office workspace across 51 properties, we are Australia's preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by more than 29,000 investors from 24 countries. With 36 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors. www.dexus.com
Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS)
About Dexus Wholesale Property Fund
Dexus Wholesale Property Limited ABN 47 006 036 442, AFSL 238166, as Responsible Entity for Dexus Wholesale Property Fund.
27-Apr-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||Dexus Finance Pty Limited|
|264 George Street|
|Phone:||+61 2 9017 1100|
|Fax:||+61 2 9017 1101|
|Listed:||Regulated Unofficial Market in Frankfurt|
|EQS News ID:||1188419|
|End of Announcement||DGAP News Service|
1188419 27-Apr-2021 CET/CEST