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Australian property firm Dexus has agreed to buy an additional 25 percent interest in Westfield Chermside, Brisbane, for AUD 683 million, doubling its total ownership to 50 percent alongside Scentre Group. This investment is part of the newly launched Dexus Strategic Investment Trust series, seeding its first fund and reflecting a 5 percent capitalisation rate. Westfield Chermside is one of Australia’s largest regional shopping centres by sales and gross lettable area and features more than 480 retailers. Scentre Group will continue managing the centre’s operations.
Dexus has agreed to buy a further 25 percent interest in Westfield Chermside, a major retail property in Brisbane, for AUD 683 million, raising its total ownership in the centre to 50 percent alongside partner Scentre Group. The acquisition funds the first vehicle in the newly launched Dexus Strategic Investment Trust (DSIT) series and is based on a market capitalisation rate of around 5 percent. Settlement is expected later this month. Advertisement
The deal follows an earlier purchase this year when Dexus’s Wholesale Shopping Centre Fund acquired an initial 25 percent stake in the asset for the same amount, increasing Dexus’s involvement in one of Australia’s most prominent retail destinations. Westfield Chermside serves a large trade area north of Brisbane’s central business district, with over 480 retailers including major department stores, supermarkets, fashion brands, and leisure offerings.
Under the new structure, Dexus will co invest approximately AUD 170 million into the trust for a 49 percent interest, with the balance of capital expected to come from third party investors during the next financial year. Scentre Group will retain its 50 percent stake and continue to manage property, leasing, and development functions at the centre. This approach allows both parties to benefit from the asset’s performance while Scentre Group maintains operational control.
Westfield Chermside is recognised as the second largest regional shopping centre in Australia by sales and gross lettable area. The centre’s significant scale, strong foot traffic, and diverse tenant mix have made it a key retail destination. Its performance in recent years, with millions of annual visitors and robust retail sales, underlines its importance to both investors and the local community. The additional equity brought into the partnership aligns with ongoing strategies for long term growth and capital management.
Source Reuters
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