Dexus exits US, looks to buy local assets

Dexus Property Group has completed its exit from the US with an unconditional agreement to sell its remaining US industrial property in Los Angeles for $US56.2 million.

In December the group raised close to $521 million with the sale of 27 US assets, the bulk of its portfolio, with the funds used towards the purchase of Sydney assets in a joint venture with its unlisted fund.

Dexus chief executive Darren Steinberg said the departure from the US was ahead of schedule and allows the group to concentrate on Australia.

The group has been suggested as a possible purchaser of some of the assets within GE Capital's portfolio, which some analysts have dismissed, as well as the NSW properties.

Mr Steinberg has said Dexus is also interested in expanding its footprint in Melbourne.

He said on Monday that the funds raised from the Los Angeles sale would be used to repay the short-dated debt associated with the property.

In a recent report, UBS analysts said office-focused real estate investment trusts are expected to be net acquirers of assets.

"Dexus has the highest quality office portfolio in the Australian market and the company has $1 billion acquisition capacity within its wholesale funds and about $500 million on its balance sheet," the UBS report says.

"In a high [lease] incentive environment, Dexus has the highest-quality funds from operations and faces the least headwinds from incentives of the office REITs."