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Dexus buying Australian development projects for A$188M

Dexus agreed to buy three industrial development sites in Melbourne, Sydney and Brisbane that have an expected combined end value of roughly A$700 million.

The properties are being acquired for a total of A$188 million, to be funded through existing debt facilities.

Dexus is fully buying the 10-hectare brownfield site at 54 Ferndell St. in Sydney's South Granville suburb, with settlement expected in September. The project has a development period of two years and is expected to provide roughly A$140 million in end value.

Dexus is also fully buying the nine-hectare brownfield site at 425-479 Freeman Road property in the Brisbane suburb of Richlands, with settlement expected in December. The development period is between two to three years and a roughly A$90 million end value is expected from the project.

In the Melbourne suburb of Ravenhall, Dexus is acquiring a 50% interest in the 127-hectare 11-167 Palm Springs Road property, with the remaining 50% interest to be held by Dexus Wholesale Property Fund. The company plans to develop up to 380,000 square meters of commercial and industrial space on site, which is expected to create roughly a A$480 million asset over the next five- to seven-year period. Settlement of the site is planned in two tranches in December 2018 and August 2019.

The diversified property company said the deals are meant to replenish its industrial development pipeline in core locations.