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Five months after snapping up a 25 per cent stake in Brisbane’s Westfield Chermside, property group Dexus (ASX: DXS) has doubled down, lifting its stake to 50 per cent with a further $683 million investment.
The deal seeds the first fund in the newly launched Dexus Strategic Investment Trust (DSIT) series, with the purchase price aligned to Scentre Group’s 30 June 2025 book value and a five per cent valuation capitalisation rate.
Westfield Chermside is Queensland’s largest shopping centre and the country’s second-largest regional shopping centre by both sales and gross lettable area, featuring 486 retailers just 10km north of the Brisbane CBD.
Under the agreement, Dexus will make an initial co-investment of $170 million in the fund for a 49 per cent stake, with third-party investors contributing the balance.
Further external capital is expected to be brought in during FY26, at which point Dexus plans to retain a long-term holding of roughly $50 million.
“Our funds platform provides investors with access to high-quality assets across multiple strategies that align with their specific investment objectives,” Dexus Retail Executive General Manager Kirrily Lord said.
"By working closely with our investment partners, we’re able to deliver compelling opportunities and continue to expand our platform offering.
"This transaction leverages our established relationship with Scentre Group to secure a further Platform investment in a market-leading asset."
Following the deal, Scentre Group will own the remaining 50 per cent of Westfield Chermside directly and remain the property, leasing and development manager.
The Sydney-based company will invest $50 million into the new Dexus-managed fund as a foundation investor, an investment it expects to hold only for a temporary period.
Scentre Group CEO Elliott Rusanow added that following the transaction, approximately $1.3 billion of new capital will be introduced into the group.
“This is consistent with our long-term capital management strategy and provides the group with further capital to pursue our strategic objectives and deliver sustainable growth for our securityholders.”
The deal is expected to settle before the end of 2025.
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