Dexus completes $2bn divestment program

Dexus has completed more than $2 billion in asset divestments ahead of its FY27 target after agreeing to sell three office properties for a combined $715 million.

The transactions include Sydney office assets at 30-34 Hickson road and 36 Hickson road, along with Brisbane's 123 Albert Street. Dexus said the sales were in line with independent valuations as of 30 June 2026 and represented an approximately 4% discount to their combined book value on 31 December 2025.

Dexus chief executive and managing director Ross Du Vernet said the milestone demonstrated the group's ability to execute on its capital strategy.

"Today's announcement demonstrated our disciplined approach to capital management and meeting commitments to security holders," Du Vernet said.

"We have a high-quality investment portfolio and transactions like these show we can secure liquidity at pricing which represents a significant premium to what is implied in the Dexus security price. We remain focused on initiatives that demonstrate and unlock value."

Settlement is subject to customary conditions including approval from the Foreign Investment Review Board.

Dexus said around 67% of the sale proceeds will be received at settlement. With the remaining 33% deferred for 30 months and attracting a 6.25% annual coupon.

Upon settlement, Dexus expects the proceeds will reduce its pro-forma look-through gearing by around two percentage points, further strengthening the balance sheet as it continues to recycle capital across its property portfolio.