Dexus dumps $ 555 million in Sydney office assets

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Dexus dumps $ 555 million in Sydney office assets as it heads to other investment opportunities.

The group sold its 50 percent stake in 309-321 Kent Street, Sydney for $ 401 million to Hong Kong-listed Liu Chong Hing Investment Limited and Ashe Morgan.

The two office buildings were 93 percent occupied and the weighted average lease term was 3.5 years.

The deal was a continuation of the duo’s office buying spree which also included 310 Ann Street, Brisbane for $ 210 million in March.

The other Class A office building at 150 George Street, Parramatta and the adjacent 2,271m² site were also sold, just before Christmas, for $ 154 million to an undisclosed buyer in an unsolicited deal. and off the market.

Commonwealth Bank of Australia recently left the site with 21,964m² of space which has approval for a 33-story office building.

The proceeds from the sale would initially be used to repay debts as the ASX-listed company targets “short-term growth prospects in the industrial and healthcare sectors.”

Dexus bought Perth’s Jandakot Airport and surrounding parcels for $ 1.3 billion and developed its local REIT in recent deals worth over $ 21 million.

Despite the change in investment strategy, the group was still confident in the office market which Dexus CEO Darren Steinberg expected to improve after Australian Day.

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