Deals roll in for major offices despite coronavirus storm
The country’s premiere office towers are weathering the coronavirus crisis storm with sales being struck at levels showing only slight shifts in values ahead of the pandemic hitting.
About a dozen major commercial property deals either collapsed or went into hibernation when the crisis struck in March, but behind the scenes talks could see some of the country’s best buildings change hands.
In one of the latest plays, Darren Steinberg-led property group Dexus is selling a major tower in Sydney’s Clarence St for about $530 million to an Asian investor.
Market players suggested that investor and developer Zone Q was in the frame to buy the building.
While the deal is yet to be finalised it will show a yield or market capitalisation rate of around 5%, in line with where it has been held by Dexus and showing that investors will pay up for top-quality buildings.
The building at 45 Clarence St is a landmark in the western corridor of Sydney’s financial district adjacent to Barangaroo, The 28 level A-grade tower has floor plates of 1250sqm and had a book value of $507 million in June 2019.