Dexus names new CEO to lead $50bn transformation

The property investment giant has appointed a new boss to helm a major push into infrastructure and navigate increasingly challenging conditions in commercial real estate.

Property investment giant Dexus has appointed a new boss to helm a major push into infrastructure and navigate increasingly challenging conditions in commercial real estate.

Ross Du Vernet will step up to the plate as chief executive from next March to replace veteran Darren Steinberg, who has been with the ASX-listed property firm since 2012.

Mr Du Vernet, who has been with Dexus since 2013, will kick off the gig with a base salary of $1.5m, inclusive of super, when he takes on the role.

Mr Du Vernet, who was previously chief investment officer, saw off funds management head Deborah Coakley for the top job

Dexus last month flagged a major push into infrastructure and new areas of property over the next decade in a move that could see it bolster its empire by $50bn.

Dexus has ambitions to transform it into a funds-driven operation like Goodman Group or rival Charter Hall whose growth has been powered by local and offshore capital.

Dexus believes it can draw on its infrastructure capacity, picked up in the acquisition of Collimate Capital from AMP, putting it ahead of rivals focused on property partnerships.

Mr Du Vernet said it was a “privilege” to be appointed to the chief executive role as Dexus enters an exciting stage in its evolution. “Darren is handing over Dexus in a strong position and I am committed to working with our clients, the board and wider Dexus team as we deliver long-term value for investors and work towards our vision of being globally recognised as Australasia’s leading real asset manager,” said Mr Du Vernet.

Dexus CEO designate Ross Du Vernet

Dexus wants to increase its funds unit by about $50bn over the next decade as it transforms its business model. Its shares have dropped about 8 per cent over the past year as investors mark it down due to its exposure to under-pressure office towers. It has been an early seller of city buildings, and believes its push into funds will pay off.

Dexus announced in August it had swung to a $752.7m full year loss, driven by cuts to the value of its property portfolio as interest rates hit the listed property sector. The company has pushed deeper into funds management as the market cycle has turned, helping diversify earnings. Mr Steinberg said in August that higher interest rates would continue to impact its results in fiscal 2024, along with the impact of cycling a relatively strong year of trading profits. Dexus chair Warwick Negus paid tribute to Mr Steinberg, who had been instrumental in growing Dexus’s total funds under management from $12.9bn to $61bn, while also moving the firm into new sectors such as healthcare and infrastructure.

“The board has spent much of 2023 planning for succession, which also included executing a global search,” said Mr Negus. “Ross will succeed in leading Dexus through its next phase of growth. During his time at Dexus, he has made a significant contribution to the delivery of our strategy and repositioning the company as a leading Australasian real assets manager.

“The combination of his deep property investment expertise, track record of setting and delivering on strategy makes Ross the ideal successor.”

Mr Steinberg said Dexus had an experienced team that he would miss working with every day. “One of my proudest achievements is building a talented team of people who I have seen flourish at Dexus,” said Mr Steinberg. “It has been an honour to have been the chief executive of Dexus and I would like to congratulate Ross on his appointment.”

Darren Steinberg is heading for the exit doors.

Originally published as Dexus names new CEO to lead $50bn transformation