Dexus nets $273m from North Sydney office block sale
Property group Dexus is backing up its claim that office values will hold, selling a North Sydney office block for $273m, just above its book value.
The property group has been inundated with offers for its best towers and is also selling a half-stake in Grosvenor Place to China’s sovereign wealth fund, the China Investment Corporation, for close to $1bn.
Dexus offloaded another building on Clarence Street in the Sydney CBD to Singaporean fund manager Peakhurst for about $530m in June, and further assets are on the block.
Dexus is pumping the proceeds back into supporting its funds management unit, logistics projects, preparing new developments and buying back stock.
The company has forecast earnings that are flat on this year, showing it will not be too deeply impacted by the pandemic.
Dexus sold the building at 60 Miller Street, North Sydney, to Hong Kong group Huge Linkage, which owns other buildings in the area. Net sale proceeds of $273m show a 3% premium to the property’s book value.