May 2, 2019 / 12:02 AM / 4 months ago

Australia's Dexus to buy Melbourne office site for $1 bln

May 2 (Reuters) - Australian real estate investment trust Dexus on Thursday said it will buy an office property in Melbourne for A$1.48 billion ($1 billion) and undertake an equity raising to help fund the acquisition.

The REIT will seek to fund its purchase through a fully underwritten A$900 million placement to institutional investors at A$12.10 a share. Dexus shares closed on Tuesday at A$12.50.

It will also undertake a non-underwritten security purchase plan to raise up to A$50 million.

The property, 80 Collins precinct in Melbourne’s central business district, expands Dexus’s presence in the area.

Dexus, alongside related entities, will buy the property from QIC Global Real Estate.

The deal is expected to positively impact the company’s distribution per security in the 2020 financial year. ($1 = 1.4255 Australian dollars) (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Stephen Coates)

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