Dexus sells Grade-A office tower in Sydney’s CBD for $530m

Dexus sells Grade-A office tower in Sydney for $530m

Australian real estate group Dexus, the largest office landlord in the country, has sold 45 Clarence Street Sydney, an A-grade office tower in Sydney’s CBD, to Peakstone, a Singapore headquartered manager of Asian capital, for A$530 million.

45 Clarence Street is a 28-level, A-grade office tower across 32,000 square metres, located in the western corridor of Sydney’s financial district (CBD) and was built in 1990. The building is situated close to Wynyard Walk, Wynyard Station and the Circular Quay transport hub. Accessibility will further improve with the George Street light rail.

At 31 December 2019, the property was 100% occupied and had a weighted average lease expiry of 3.3 years. The transaction is subject to the purchaser receiving FIRB approval, said the company in a statement.

Darren Steinberg said: “This transaction reinforces the resilience of prime quality office asset values in the Sydney CBD and enables us to recycle capital into higher returning opportunities that we expect will become more prevalent over the coming period.”

The transaction follows the completion or exchange of more than $800 million of property divestments across the group during FY20.
The net sale proceeds will initially be used to repay debt.