Dexus (ASX: DXS)

ASX release

23 July 2025

Dexus invests in DWSF as fund secures strategic investment; progresses divestment program

Dexus investment in DWSF as the fund secures strategic investment in Westfield Chermside

Dexus today announced its flagship retail fund, Dexus Wholesale Shopping Centre Fund (DWSF), has exchanged contracts with Scentre Group to acquire a 25% interest in Westfield Chermside, Brisbane, for $683 million (excluding transaction costs).

Westfield Chermside, located 20 minutes north of Brisbane's CBD, is Australia's second-largest regional shopping centre by both sales and gross lettable area. This acquisition aligns with DWSF's strategy of owning market-leading retail assets with strong growth potential.

In line with Dexus’s strategic priority to invest alongside funds and recognising DWSF’s sector-leading performance, Dexus will invest an additional $170 million into the fund, taking its investment to $300 million. Dexus is also supporting further initiatives to ensure the fund maintains investor appeal and performance. These include changes to the fee structure, fund liquidity and backstop funding in relation to the sale of the Macquarie Centre.

Together with the acquisition of Westfield Chermside, Dexus’s investment supports DWSF’s strategy, driven by a specialist retail sector team and refreshed leadership, and positions the fund for the future.

Michael Sheffield, Dexus Executive General Manager, Funds Management, said: "This exclusive off-market transaction leverages our established relationship with Scentre Group to secure a market-leading asset for DWSF. Dexus’s co-investment underscores its conviction in the fund’s strategy and future potential."

Kirrily Lord, Dexus Executive General Manager, Retail, said: "Westfield Chermside's scale, performance metrics and community integration make it an exceptional addition to our retail platform, delivering both immediate performance and long-term value creation."

Divestment of two properties and securing additional trading profits for FY26

Consistent with its divestment program, Dexus also announced the sale of two properties with combined proceeds of $153.5 million^[1], in which Dexus’s share is $92.8 million.

116-130 Gilmore Road, Berrinba was sold for $32.0 million¹, reflecting a 6.7% premium to the prior book value as at 31 December 2024. 116-130 Gilmore Road is an industrial asset located in South West Brisbane with a WALE of 6.6 years[2] and occupancy of 100%². Settlement occurred on 27 June 2025.

149 Orchard Road, Chester Hill was sold for $121.5 million¹, in which Dexus has a 50% share alongside its opportunistic fund DREP1. The sale is conditional on the issuance of an acceptable environmental management plan and practical completion, both of which are expected to occur by late August 2025. The sale is expected to contribute approximately $9 million pre-tax trading profits for Dexus in FY26.

Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited

For further information please contact:

Investors Rowena Causley Head of Listed Investor Relations +61 416 122 383 rowena.causley@dexus.com

Media Luke O’Donnell Senior Manager, Media and Communications +61 412 023 111 luke.odonnell@dexus.com

 

^[1] Reflects net sale price and excludes transaction costs.

^[2] As at 30 May 2025.