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.