Company Interview / Gain enhanced returns through opportunistic investing

Jason Howes of Dexus (ASX: DXS) discusses the Dexus Real Estate Partnership fund series. The successful DRP one led to the launch of DRP two, currently raising funds with $470M already committed. DRP targets a 15% net IRR by investing in Australian property repositioning, development, special situations, and alternative credit.

Opportunistic investing involves capitalising on market dislocation, acquiring assets below intrinsic value, and creating value during ownership. Jason identifies interest rate hikes as a major factor affecting real estate pricing. The strategy involves screening markets, sectors, and managers with a proven track record, like Dexus, which excels in deal execution and value creation.

Dexus focuses on sectors like living and logistics, characterised by limited supply, where they can buy well and create value. A standout project includes converting a B-grade office building in Brisbane into student accommodation, tapping into high demand. Jason highlights Dexus's unique capability in conversions, anchoring the firm's future investment strategy.

Dexus Real Estate Partnership is Dexus’s closed-ended investment fund series targeting Australian real estate opportunities.

These funds seek to provide institutional and wholesale investors with enhanced returns (target returns of 15% p.a. net equity IRR) through exposure to investments in property repositioning, development, special situations and real estate credit opportunities.

The success of DREP1 has enabled Dexus to establish DREP2 which is currently actively raising funds, with circa $470 million of commitments already secured ahead of its close later this year.

DREP1 is fully deployed across 15 investments:

39% development14% special situations24% repositioning23% credit

*this content has been made in partnership with Dexus