Real estate companies Dexus and APN Industria REIT (ADI) have joined forces to acquire Jandakot Airport in Western Australia (WA) for $940m (A$1.3bn).

As agreed, Dexus will acquire a 66.7% stake in the entities that own a 76-year ground lease at Jandakot Airport (JAD). ADI will hold the remaining 33.3% interest.

Located around 25km south-west of Perth Airport (PER) and 20km south of Perth CBD, Jandakot Airport is the major general aviation airport in WA. It started operations in 1963 and currently encompasses an area of around 620ha.

The airport mainly serves air work aviation rather than passenger transportation. Jandakot Airport is also the largest aviation training base in Australia.

Besides acquiring the airport, Dexus and ADI will spend an additional $145m (A$200m) to acquire other industrial properties.

The overall investment is part of Dexus’ plan to invest in sustainable income streams as it seeks to diversify the funds management business.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Dexus CEO Darren Steinberg said: “These are high-quality investments that will further enhance the resilience of our property portfolio.

“The near term development potential and scope to enhance returns by introducing third party capital make this a compelling opportunity, and one aligned with our priorities to grow our funds management business and recycle capital into high returning opportunities.”

ADI will raise around $253.9m (A$350m) through equity financing to partially fund its share of acquisitions. Dexus plans to take up its full $29.03m (A$40m) entitlement under ADI’s Entitlement Offer.

Meanwhile, Dexus will fund the transactions through debt facilities.

In a statement, Dexus said that the transactions are expected to be accretive to its adjusted funds from operations per security for the fiscal year 2022.