Transactions - JUNE 21, 2017

Dexus acquires Australia offices

by Andrea Waitrovich

Dexus Property Group has made several acquisitions in the Australian office sector.

Dexus, an Australian REIT, has purchased a 25 percent stake in Sydney’s MLC Center for A$361.3 million ($272.7 million). And the A$7.5 billion ($5.7 million) unlisted open-ended Dexus Wholesale Property Fund is buying a further 25 percent at the same price.

The seller was the Queensland Investment Corp. The remaining 50 percent is owned by GPT Group, a REIT.

“These acquisitions continue our dominant positioning across Australia’s major cities and reinforce our belief that Sydney will continue to benefit from the global trend of urbanization and enhanced infrastructure links over the coming years,” said Darren Steinberg, Dexus chief executive, in a statement.

The MLC Center totals more than 722,000 square feet of office space and more than 110,000 square feet of retail space.

Dexus also acquired an office building at 100 Harris St. in Pyrmont for A$327.5 million ($247.2 million).

Other assets within Dexus’ portfolio include Australia Square and Grosvenor Place, the Gateway Building at Circular Quay, 5 Martin Place, and 60 Castlereagh St.

The Australian revealed in December that Dexus had submitted an unsolicited proposal to the NSW government to build a A$2 billion ($1.5 billion) tower above the new Martin Place station in central Sydney.

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