Dexus Industria REIT (ASX:DXI) has finalised the acquisition of the remaining 50% interest in a prime industrial property at 12 Church Road, Moorebank, for $49.6 million.
The transaction, which settled on Feb. 9, consolidates DXI’s ownership to a 100% freehold interest in the Sydney South West logistics hub.
The acquisition was executed at a 5.25% capitalisation rate, consistent with the asset's most recent independent valuation.
Located in a supply-constrained precinct, the facility offers direct access to the M5 Motorway and proximity to the Moorebank Intermodal terminal.
Despite a current occupancy rate of 63%, DXI has secured income support from Dexus for the vacant spaces through the 2026 financial year.
The move is expected to increase the REIT's pro forma look-through gearing by 2.3 percentage points, though it remains at the lower end of the group's 30% to 40% target range.
Jason Weate, DXI Fund Manager, described the acquisition as a key step in the REIT's transition to a pure-play industrial portfolio following the sale of the Brisbane Technology Park.
"This asset is positioned in a hyper-connected last-mile location, capable of reaching 93% of Sydney's population within an hour," Weate said.
He added that the consolidation allows the fund to better capture rental growth and leasing momentum within the Sydney market.
The property features a modern, high-clearance warehouse with a weighted average lease expiry of 2.8 years, providing a mix of stable immediate income and medium-term re-leasing potential.
At the time of reporting, Dexus Industria REIT’s share price was $2.54.