Dexus faces $30 million legal costs and infrastructure retreat

Australian property group Dexus is facing approximately $30 million in legal costs following a Supreme Court ruling regarding its stake in the Australian Pacific Airports Corporation (APAC). The costs, ordered by Justice David Hammerschlag, are to be split between APAC, IFM Investors, and Future Fund. The litigation arose from a failed 2024 sale process known as Project Mercury, where co-investors alleged Dexus breached confidentiality and good faith obligations, triggering a default mechanism.

Separately, Dexus has announced a strategic retreat from its infrastructure business. Following a review of its infrastructure funds and mandates, the company stated that clients are seeking liquidity. As a result, Dexus will refocus its capital on office, industrial, and retail sectors. The infrastructure vehicles, which represent A$7.3 billion in third-party funds under management, will undergo asset sales to provide liquidity to investors, including the Dexus Diversified Infrastructure Trust and the Dexus Community Infrastructure Fund.