Dexus Property Group is performing strongly despite facing a tough market, leaving it well positioned for any corporate activity, including a play for the $9 billion Investa Property Group office platform.
Dexus yesterday turned in a solid third quarter and reaffirmed its earnings forecast, as industry sources tipped it would a key player in the race.
Groups, including Dexus, were being short-listed yesterday, with interest in the entire Investa platform, that comprises a $2bn direct office portfolio and a fund management business, with the land division likely to be dealt with separately.
The five-strong list of contenders is also thought to include global heavyweights Blackstone Group, Canada’s Brookfield, LaSalle Investment Management, and local player Charter Hall Group. However, the parties and advisers UBS and Morgan Stanley have declined to comment as the short-listing process continues. Dexus chief Darren Steinberg was buoyed by the group’s leasing success but declined to address the Investa process. “In light of the current economic conditions it’s pleasing we’ve been able to take advantage of an increase in inquiries, in particular in Sydney and Melbourne,” he said.
“We’re beginning to see a response to the lower interest rate environment from the amount of inquiry up and down the east coast in particular.”
The trust reaffirmed its fiscal 2015 guidance of funds from operations per security of 59.48c and distribution per security of 41.04c, up 9.3 per cent.
This article first appeared in The Australian Business Review.