Investor Presentaiton
Utilising data and research
Case study: South Granville development
62 Ferndell Street, South Granville, NSW
53
1. Sydney average of 1.4 million households.
2. Coles, Bunnings, Woolworths and Aldi.
dexus
dexus
Value-add redevelopment
opportunity
> Dexus acquired a 100% interest in a 10ha
brownfield industrial property in South Granville
in 2018 and subsequently completed a
~57,000sqm development within three years.
› Off-market opportunity secured directly with
vendor
> Project delivered a 58% unlevered IRR
coles
Key customers:
Dragonfly
FUNN
Amara
Unlocked through
data analytics
> Opportunity originated through Dexus customer led
acquisition strategy and industrial conviction rating
system which identifies key location attributes suited
to our preferred customers
> The data analytics confirmed favourable site
attributes:
⚫ c. 7% more households within 60-minute drive than
Sydney average¹
⚫c. 17% reduction in outbound logistics costs for major
retailers²
•Accessible workforce with population growth
exceeding Sydney averages by more than double
• Located within a tightly held, non-institutional
industrial market with constrained land supply in
close proximity to the M4 Motorway (Westconnex)
Navigating complexity
Case study: Waterfront Brisbane precinct development
54
Background
Complex negotiations
and approvals
Complex delivery
and activation
dexus
> In 2015 Dexus acquired
Waterfront Place and Eagle
Street Pier a 2.2ha site in the
centre of Brisbane CBD
> Development opportunity
difficult to access due to
complicated land titling and
divergent stakeholder
interests
> Entered into a 50/50
development with a Dexus
managed fund (DWPF)
> Negotiated:
•Acquisition of freehold land
from the State
Reclamation lease
• Replacement leases
following termination of
existing sub-lease to Council
• Access Agreements
(adjoining owners)
•⚫ Fixed price build contract
⚫7 Agreements for Lease with
new customers to-date
> Secured development
approvals and infrastructure
agreements
> Long-dated program
presented leasing and
de-risking challenges
› Challenging leasing market
through COVID and while
customers assess space
requirements and
work-from-home trends
> Staging two tower scheme to
minimise customer disruption
> Part of the construction
requires creating additional
land from the river.
Project overview:
Artist impression: Waterfront Brisbane, QLD
$ $1.7bn (Stage 1) / c. $2.5bn (whole project) total project cost!
c.5-6%2
%
target yield on cost (Stage 1 and Stage 2)³
76,100sqm NLA (Stage 1)/133,600sqm total NLA (whole project)
Stage 1 expected to be completed by early 2028
1. Development cost at 100% ownership (including land, funding cost and excludes downtime and income earned through development).
2. Target yield on cost calculation includes cost of land, funding cost, downtime and income earned through development the denominator.
3. Estimated project cost and estimated cost to completion include the pad site costs associated with Waterfront Stage 2. Yidd on cost excludes pad site costs associated with Waterfront Stage 2.
2023 Dexus Investor Day
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