Dexus defies coronavirus challenges with $2bn in office sales
Property group Dexus could take its dramatic property sell-down to around the $2bn mark as it fields offers for a one quarter slice of Melbourne’s landmark 80 Collins Street development that it picked up last year in the city’s largest ever direct property deal.
The Collins Street project is one of the city’s largest and comprises an existing 47-level A-grade office tower, a premium grade office tower that will rise 35 levels, a major retail podium and a boutique hotel.
Dexus and its wholesale fund snapped up the entire development for close to $1.5bn last year and are finishing it off. The company has undertaken value-adding plays like winning law firms HSF and Ashurst as major tenants, adding to a roster including Macquarie Bank, McKinsey & Company and DLA Piper.
The behind-the-scenes offering has been prompted by approaches to the company since it bought the project in May 2019 and bringing capital partners into the deal was on the cards even at that time.
The move will test the Melbourne market but indicates that top-quality office buildings are trading even amid broader concerns about the city’s second lockdown and a wave of new towers that could add to supply at a time when leasing markets are all but frozen.
The Darren Steinberg-led company has been an active seller and last week secured Chinese sovereign wealth fund China Investment Corporation as the preferred party to buy a half interest in Sydney landmark Grosvenor Place.