Trading
Dexus Wholesale Australian Property Fund (DWAPF)
Direct Property Fund which aims to provide regular distribution
INDUSTRY
Commercial Property
STATUS
Trading
OPEN TO
Wholesale investors and advised retail investors
Investment Highlights
Open-ended fund established 1985
7.9% return to investors (net of fees) since inception [1]
Gross assets of approximately $1.8 billion as of 30 June 2025
Diversified across the office, retail and industrial sectors
Portfolio occupancy of 95.7% and WALE of 4.4 years
Gearing range of 0-45% with long-term target 0-15% of gross assets
Monthly redemption windows with payments to be made within 12 months (subject to conditions) [2]
1- Past performance is not an indication of future performance
2- While the Fund is liquid, the Responsible Entity aims to pay redemptions within 12 months receiving the redemption request, however this may be extended in certain circumstances.
Fund Suitability
The Dexus Wholesale Australian Property Fund is intended for use as a minor to satellite allocation within a diversified investment portfolio for an investor who is seeking capital growth and regular income distributions and has a high risk and return profile for that portion of their investment portfolio. It is likely to be consistent with the financial situation and needs of an investor who has a 5-year investment timeframe and who is unlikely to need to withdraw their money on less than one year's notice.
Fund Overview
Investing via the Dexus Wholesale Australian Property Fund allows investors to benefit from a +$1.8 billion portfolio for as little as $10,000.
38.5% Current gearing. Gearing range of 0-45% with long-term target 0-15% of gross assets
95.7% High occupancy rate.
Returns – Over the year to 30 June 2025, the Fund returned 6.88% of which 6.02% was the distribution and 0.86% was growth. The quarterly total return in Q2/2025 was 0.87%. Tax-deferred component for the quarter was 95.5%.
Valuations – The valuations of all properties in the portfolio either increased or were stable over the quarter, with an average increase of 0.9%. The retail portfolio increased by 1.0%, the office portfolio increased by 1.4% and the industrial portfolio increased by 0.4% over the quarter. There was no cap rate compression and growth was underpinned by successful leasing outcomes, completed capital expenditure and/or market growth. Valuations have now increased for five consecutive quarters, though still well below replacement cost.
Key metrics – The Fund’s occupancy was maintained above 95% and the weighted average lease expiry was stable at 4.4 years.
Divestments – Settlement reached on 121 Evans Road, Sailsbury. The property was sold for $55.4 million, 3.6% higher than book value.
Gearing – The Fund’s gearing was 38.5% as of 30 June 2025. During the quarter, $240 million of bank debt was refinanced, with relevant lenders re-committing to the Fund – with the terms of the refinancing improving the interest rate payable.
Product features – a new PDS was issued on 26 June offering Class D units. These units offer capped monthly liquidity2 and are we are currently in the process of having this unit class added to the investment menus of all leading platforms.
Rating – Core Property Research issued a Recommended rating on the Fund during the quarter and the Fund was nominated as a finalist in the unlisted real assets category of the Money Management Fund Manager of the Year awards.
Development – 636 St Kilda Road has been identified as potential for residential conversion and this is currently being investigated.
AREITs – in Q3/2025, the Fund plans to re-establish a small portfolio of AREITs. In addition to providing a liquidity option, the Fund’s listed portfolio has previously been used to enhance returns through early investments into emerging sectors.
Availability – the Fund was recently re-opened on Insignia and the new class of units will soon be available on platforms.
Navigating the Market
The 24 direct property interests are diversified across different sectors, with approximately 350 tenants supporting the cashflow. These tenants operate in a range of industries and the largest tenants in the portfolio account for just 6.0% of the total Fund's revenue.[6]
The portfolio is diversified across major metropolitan cities with properties located in Sydney, Melbourne, Brisbane, Adelaide and the Gold Coast and the Fund’s largest assets account for just 11.3% of the portfolio.[6]
Retail Portfolio
The retail portfolio has a long-term occupancy rate of 99%.
The retail portfolio comprises convenience-based centres located in established suburban communities. These assets are anchored by major supermarkets and supported by a mix of fresh food, healthcare, personal services, and essential retail offerings. With a long-term occupancy rate near full capacity, the portfolio demonstrates strong tenant demand and resilience. Centres are designed to meet daily needs and foster community engagement, driving consistent foot traffic and sales. The retail strategy focuses on accessibility, tenant diversity, and experiential elements that enhance customer loyalty and performance.
Industrial/Logistics Portfolio
The industrial portfolio includes versatile, well-maintained properties located in key logistics and manufacturing corridors across major capital cities. These assets offer high-clearance warehouses, modern office integration, and excellent connectivity to transport infrastructure. With a long-term occupancy rate of 97%, the portfolio supports a wide range of tenants, including logistics, distribution, and manufacturing users. Sustainability features such as solar PV systems and EV charging are integrated into newer developments. The portfolio is positioned to deliver operational efficiency, scalability, and long-term value for tenants and investors alike.
Office Portfolio
The office portfolio is characterised by its strategic locations in high-amenity urban areas, offering quality accommodation at competitive rents. These assets cater predominantly to small and medium-sized tenants, which represent the most active segment of the market. Properties are typically situated near major transport links and benefit from strong occupancy rates. The portfolio emphasizes flexibility, natural light, and modern facilities that support tenant retention and satisfaction. Managed by a leading office specialist, the portfolio benefits from deep market intelligence and leasing expertise, ensuring consistent performance and tenant engagement.
Alternatives Portfolio
The Fund also invests in contemporary sectors such as life sciences, retail outlet, hospitality, and residential development. Through its portfolio of listed securities the Fund has historically also invested in data centres, self storage facilities and land lease communities.
Company Overview
Dexus (ASX: DXS) is a leading Australasian fully integrated real asset group, managing a high-quality Australasian real estate and infrastructure portfolio valued at $54.5 billion. The Dexus platform includes the Dexus investment portfolio and the funds management business.
Dexus directly and indirectly owns $14.8 billion of office, industrial, retail, healthcare, infrastructure and alternatives. Dexus manages a further $39.7 billion of investments in our funds management business which provides third party capital with exposure to quality sector specific and diversified real asset products.
The funds within this business have a strong track record of delivering performance and benefit from Dexus’s capabilities. The platform’s $16.1 billion real estate development pipeline provides the opportunity to grow both portfolios and enhance future returns. Dexus believes that the strength and quality of its relationships will always be central to its success and are deeply connected to our purpose Unlock potential, create tomorrow.
Dexus' sustainability approach is focused on the priority areas where it believes it can make a significant impact: Customer Prosperity, Climate Action and Enhancing Communities. Dexus is supported by more than 37,000 investors from 23 countries. With four decades of expertise in real estate and infrastructure investment, funds management, asset management and development, we have a proven track record in capital and risk management and delivering returns for investors. www.dexus.com.
Fund Manager
Christopher Davitt is the Fund Manager for the Dexus Wholesale Australian Property Fund and has overarching responsibility for setting the Fund’s strategy and capital management. Christopher works with Dexus’s specialist teams to formulate asset plans for each of the Fund’s properties and make acquisitions and divestments.
Christopher joined Dexus in 2022 as part of Dexus’s wider acquisition AMP Capital. He joined AMP Capital in March 2010 having previously held research, transaction and funds management roles in Australia and Europe.
Risks
All investing involves risk, and you should consider investment risks before making an investment decision. The risks specific to the Fund may include or be associated with:
Property investments – factors such as investor demand for property, the demand by tenants for commercial space, rental income levels, tenants’ ability to service rental payments, the supply of new commercial space, capital expenditure and ongoing expenses for maintenance and repairs may affect the Fund’s performance.
Liquidity – assets subject to liquidity risk may be difficult to trade and it may take longer for their full value to be realised, and in circumstances where the Fund's portfolio ceases to be ‘liquid’ for Corporations Act purposes, there may be significant delays or a freeze on withdrawal requests. Market conditions may adversely impact the liquidity of assets held in a fund portfolio.
Interest rates – including the risk of capital loss in a rising interest rate environment.
Gearing – has the effect of magnifying the Fund’s returns, both positive and negative.
Derivatives – the use of derivatives may magnify any losses incurred.
Market risk – certain events may have a negative effect on the economies and financial markets worldwide or in specific countries or regions which may negatively affect the value of investments including the Fund's investments.
Product Disclosure Statement is available at:
www.dexus.com/dwapfinvest
Important note: Investors and potential investors should consider the Product Disclosure Statement (“PDS”) available from Dexus Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (“DCFM”) for the Dexus Wholesale Australian Property Fund (“Fund”) before making any decision regarding the Fund. The PDS contains important information about investing in the Fund and it is important investors read the PDS before making a decision about whether to acquire, continue to hold or dispose of units in the Fund. A target market determination has been made in respect of the Fund and is available at www.dexus.com/dwapf.
DCFM is the responsible entity of the Fund and the issuer of units in the Fund. DCFM is a wholly owned subsidiary of Dexus (ASX: DXS). Any investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither DCFM, Dexus nor any other company in the Dexus group guarantees the repayment of capital or the performance of the Fund or any particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance. For details of the Fund’s performance over different time periods, please refer to the Fund information page at this link: www.dexus.com/dwapf.
While every care has been taken in the preparation of this document, DCFM and Dexus make no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to their objectives, financial situation and needs.
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