GIC, Dexus to buy interest in Melbourne skyscraper for A$644m
GIC, Singapore’s sovereign wealth fund, and Australian property investor Dexus have set up a joint venture to acquire a 50 percent stake in the iconic Rialto Towers, located in Melbourne, for A$644 million (US$392 million). GIC will hold a 90 percent share in the partnership, while Dexus will retain the remaining 10 percent.
According to media reports, the seller of the 50 percent stake in the tower is London-based St Martins Property Group, which is wholly owned by the Future Generations Fund, one of two funds managed by the Kuwait Investment Authority.
The 55-storey building is one of the largest office buildings located in Melbourne’s central business district, at 525 Collins Street, with good access to transport and other key amenities.
The property is 91.7 percent occupied with a weighted average lease expiry of 4.6 years as of 1 March 2020. Rialto Towers is expected to benefit from the positive supply-demand dynamics of Melbourne’s office market over