Property group clears American commitments

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

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

Dexus chief executive Darren Steinberg said the exit from the US allowed the group to concentrate on the Australian market.

The group has been suggested as a possible participant in some of the assets within the GE Capital portfolio, which some analysts have dismissed, as well as the NSW properties. Mr Steinberg has said Dexus was also interested in expanding in Melbourne.

He said on Tuesday 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 were 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 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."