Dexus has formed a joint venture with Singapore-based property group Mercatus Co-operative to acquire a stake in an office building in Sydney's central business district.
The Mercatus Dexus Australia Partnership (MDAP) will acquire a 33.33 percent interest in 29-story 1 Bligh St. for A$375 million ($288 million).
Mercatus will own a 90 percent stake in MDAP while Dexus will hold the remaining 10 percent and continue to manage 1 Blight St. following the acquisition.
Tan Ser Joo, CEO of Mercatus, said, “This acquisition is part of our strategy to diversify our portfolio and to generate sustainable long-term returns. We are honored to be able to partner Dexus, one of Australia’s leading real estate groups, in our first direct real estate investment overseas.”
1 Bligh St. is 99.5 percent occupied, with a weighted average lease expiry of 5.4 years as of December 2020. Major tenants include Clayton Utz, Bloomberg Australia Pty Ltd. and the Commonwealth
