A high volume of Commercial real estate recently changed hands in Maryland when Australia-based Dexus Property Group decided to enter a deal with their affiliate, Blackstone Real Estate Partners VII.
Dexus, which is largest office space owner in all of Australia, unloaded its portfolio of nine assets in Maryland to the tune of $89.7 million. The Maryland assets were tied into a larger deal between Dexus and Blackstone that totaled $770 million.
Officials for Dexus said the price of the portfolio was about even with its book value.
The CEO of the Dexus stated in a press release that the company's strategy is to slowly get out of markets in the United States that are considered "non-core".
The portfolio included 65 industrial properties in total. The nine properties in Maryland occupy a total of 1.4 million square feet and are located around both Jessup and Baltimore. The largest is a complex with two warehouses that takes up 454,000 square feet.
The properties are used for a variety of reasons. Some of the properties in Jessup are used for such things as the shipment of batteries and photo equipment, among other things.
The portfolio was financially healthy, according to the Dexus CEO, as occupancy in those properties has surged. The CEO said that the occupancy rate has gone up 12.8 percent in the first six months after the company took on leasing duties in the summer of 2011.
Large, complex transactions such as these can often be daunting and intricate. It is safe to assume that both companies consulted qualified attorneys before entering into any sort of agreement.
Source: Gazette.net, "Aussies sell nine Maryland properties as part of $770M deal," Sonny Goldreich, April 20, 2012