Dexus to sell office tower in North Sydney for $273m

Dexus to sell office tower in North Sydney for $273m

Australian real estate group Dexus said on Monday that it has conditionally exchanged contracts to sell 60 Miller Street, a Grade A office tower in North Sydney for A$273 million.

Dexus said the sale represents a circa 3% premium to the property’s book value at 30 June 2020 and supports the solid investment demand for quality office assets.

60 Miller Street is a 17-level, Grade A office tower in North Sydney with ground floor retail across 19,350 square metres, located in the centre of North Sydney’s financial district and was built in 1987.

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

The property comprises 12 levels of office accommodation, two levels of retail and three levels of basement parking for 165 vehicles.

At 30 June 2020, the property was 97% occupied and had a weighted average lease expiry of 3.5 years. Key customers include
Covermore and Flight Centre.

“This transaction reinforces private market demand for quality office assets in Australia’s gateway cities. The sale improves portfolio composition and enables us to organically fund growth in our development and funds management businesses, while preserving capacity for further capital management initiatives,” said Ross Du Vernet,Dexus Chief Investment Officer.