Dexus and DWPF have exercised their rights to acquire the remainder of MLC tower, taking ownership to 50% each.
Macquarie believes the transaction has turned out better than expected for Dexus unitholders as this is a prime Sydney CBD asset that has been acquired at book value amid favourable funding terms.
The broker believes Dexus remains a market performer and office conditions should stay favourable. Neutral rating maintained. Target is raised to $11.36 from $11.31.
Sector: Real Estate.
Target price is $11.36.Current Price is $12.34. Difference: ($0.98) – (brackets indicate current price is over target). If DXS meets the Macquarie target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).