Dexus has offloaded two industrial facilities as demand for space and assets in the sector grows in Melbourne’s eastern growth corridor.
The assets were acquired by Arrow Capital Partners, who paid $22,92 million for the facilities at 3 and 4 Forbes Close in Knoxfield, 27km east of the Melbourne CBD.
The sale means hands Arrow 12,674sq m of industrial space across the two facilities on a 2.4ha site.
The facilities comes with a weighted average lease expiry of 2.5 years and are fully leased.
Chris Jones, Adrian Rowse and Charlie Holmes of Cushman & Wakefield negotiated the deal with Ben Hegerty and Jack Kelliher of JLL, who represented Dexus.
The eastern growth has vacancy levels of less than 1 per cent thanks to great demand for industrial assets and sites in the area.
This leaves Arrow in a good position for yields from the assets while Dexus continues divesting assets.
To that end, Dexus recently sold the Axxess Corporate Park in Victoria's Mount Waverley for $306 million and an office building in Sydney’s St Leonards for $118.3 million. Both were sold to Gateway Capital.
Dexus also sold a Central Coast retail centre for $111 million.
Prior to that sale, it sold three retail and shopping centres in the last quarter of 2022, as it opted to get out of the retail sector.
Dexus has divested itself of $1.5 billion in assets over the 2023 financial year with sale proceeds for the month prior to the Knoxfield sale hitting $700 million.
Moody’s Investor Services predicted in May that industrial values would drop by 5 per cent.
Meanwhile, Dexus’ property assets lost around $1 billion in value.
