Dexus Industrial REIT is disposing of its asset at 16-28 Quarry Road in Stapylton, Queensland for AUD66.9 million.

The divestment value is broadly in line with the asset’s book value as at 31 December 2022, said the REIT.

Dexus Industrial REIT has described the sale as being consistent with its strategy of “leveraging the Dexus platform to generate superior risk-adjusted returns”.

Additionally, the divestment will also reduce the REIT’s pro-forma look-through gearing by about 3% from 29.5% at 31 December 2022.

It will also create balance sheet flexibility to pursue future opportunities, including developing land interests owned by the REIT in Sydney and Perth.

“In the past eight months we have contracted to sell approximately AUD230 million of assets, which is a great result for the fund’s balance sheet and positions [the REIT]for future potential opportunities”, said Alex Abell, the REIT’s fund manager.

“Proceeds will initially be utilised to repay debt, and in due course will be deployed into higher returning opportunities”, he added.

The transaction is expected to settle in October 2023.

Dexus Industrial REIT was last done on the ASX at AUD2.77.