Dexus Prop Group (DXS)

[greengiraffe]

Australia's largest commercial landlord...

http://www.dexus.com/

Dexus announces share consolidation
BUSINESS SPECTATOR OCTOBER 29, 2014 2:58PM
Print
Save for later
Mitchell Neems

Business Spectator Reporter
Melbourne
DEXUS Property Group says its full-year guidance for 8.5 per cent growth in funds from operations still stands, after unveiling a one-for-six consolidation of its stapled securities.

Chairman Christopher Beare told shareholders at the group’s annual general meeting the consolidation would see the number of Dexus (DXS) securities on issue decrease from more than 5.4 billion to approximately 905 million.

“The consolidation should not change the underlying value of your consolidated security holding in Dexus,” Mr Beare told shareholders.

He also said the consolidation could reduce the volatility in the Dexus share price.


In addition to reaffirming funds from operations guidance, Dexus also said it still expects a distribution of 6.79c per security.

Mr Beare said the group was off to a strong start in fiscal 2015, having successfully leased nearly 100,000 square metres of space across the Dexus portfolio as well as increasing occupancy in the office and industrial portfolio to 94.9 per cent at September 30.

[greengiraffe]

GIC used to own a stake in GPT... another big player and oldest REIT listed on ASX

http://www.gpt.com.au/

How GPT and Dexus planned to build a $25bn colossus
THE AUSTRALIAN OCTOBER 30, 2014 12:00AM

Sarah Danckert

Property Reporter
Melbourne

THE GPT Group and Dexus Property Group held extended merger talks about 18 months to two years ago to create a property powerhouse that would have had about $25 billion in assets under management.

Several sources confirmed that talks had been held in the period ahead of the two groups heading into a pitched takeover tussle for the Commonwealth Property Office Fund, with Dexus eventually winning control of that $4bn portfolio.

While GPT also scored a carve-out deal over some of CPA’s key office properties and a stake in a major shopping centre after the Dexus takeover, its strategy has come under scrutiny as it attempts to grow its funds empire by $10bn.

It is not known whether investment banks were engaged to thrash out the potential plan by the parties.

There have been suggestions external advisers would have been part of the process, but the plans did not progress.

Start of sidebar. Skip to end of sidebar.

MOREGPT lifts earnings forecast
End of sidebar. Return to start of sidebar.

Both GPT and Dexus draw heavily on advisers and many banks work up conceptual plans for boards to consider.

A key element of the now abandoned plan would have seen GPT chief executive Michael Cameron installed as chief executive of the merged vehicle for a two-to-three year period before stepping down to be succeeded by Dexus chief Darren Steinberg as leader of the behemoth group, several well-placed sources said.

Sources said Dexus chief financial officer Craig Mitchell was to be CFO of the greater group.

The discussion came after GPT’s CFO Michael O’Brien moved into a strategy role. He was later replaced with Mark Fookes.

The two groups also worked out which current directors of each group would sit on the merged board, with respective chairmen Rob Ferguson and Chris Beare expected to have remained board members.

Yesterday, Mr Cameron declined to comment on the matter, saying the group did not comment on speculation about corporate activity. He has recently dismissed market speculation about his tenure and the revelations could prompt investors hungry for a larger strategic play to press the group.

Mr Steinberg, who won plaudits for picking up international capital partners, maximising the value of the Dexus office portfolio and boosting its retail and even residential plans, also declined to comment.

It is understood one reason the deal fell over were concerns that key management personnel would walk during the period between when the merger deal was announced and when — and if — it was approved by shareholders.

One major fund manager who declined to be named said the merger made sense. “It would certainly have the larger scale needed to grow earnings at a faster rate,” he said.

The fund manager added that with poaching rife in the property industry talented staff concerned about their position could have been snapped up by rivals such as Stockland, Mirvac, Westfield and Lend Lease.

Another major fund manager, who also declined to be named, said he would have supported a merger between the two groups: “Consolidation is good for the industry. But both groups have gone on to bigger and better things.”