Office tower in Brisbane sells for A$285m

Office tower in Brisbane sells for A$285m

Dexus said on Tuesday it has agreed to sell 10 Eagle Street, a 34-level, 27,800 square metre, A-grade office tower in Brisbane for $285 million.

10 Eagle Street is located in the centre of Brisbane’s “Golden Triangle” and was built in 1978. At 31 December 2020, the property was 92% occupied with a WALE of 2.9 years. Key customers include AEMO, Wilson Parking and Accenture.

The office tower in Brisbane is owned by the Dexus Office Partnership, in which Dexus holds a 50% interest. Dexus will use its half of net sale proceeds to repay debt.

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“This transaction continues our asset recycling strategy, realising value for both Dexus and our Dexus Office Partner while reducing our exposure to the Brisbane market. It also provides us with an excellent opportunity to focus our leasing, asset management and development capabilities on advancing our city-shaping development project at Waterfront Brisbane,” said Ross Du Vernet, Dexus Chief Investment Officer.

”As a Brisbane-based and focused investment firm we are thrilled to be acquiring one of Australia’s best known office towers. We are acquiring a great asset with an excellent tenancy profile due to Dexus’s best-in-class management. Despite the ongoing long-term uncertainty associated with the COVID-19 pandemic, we have enabled more than 150 Australian families to invest in 10 Eagle Street and look forward to delivering strong returns as Brisbane continues to grow as a city and a city to invest in,” said Toby Lewis, Marquette Managing Director.

The sale was the result of a competitive, on market sales process with settlement expected in May 2021, said Dexus in a statement.