Dexus Sells Office Bldgs In Sydney, Brisbane
AUSTRALIA – Shayher Group is conducting due diligence to purchase a AU$400 million office park in Brisbane controlled by Dexus, reported the Australian Financial Review (AFR) on Wednesday afternoon (24 November, SGT).
The Taiwan-based investment platform and developer is scrutinizing Milton Green estate, a development comprising 6 office buildings and a retail property that is jointly owned by Sunsuper and Dexus Wholesale Property Fund.
The 4-ha site comes with 50,000 sq m of commercial space, in addition to having development approval for the construction of a 12-storey office tower. The transaction is being brokered by Kate Low, Seb Turnbull, and Paul Noonan of Jones Lang LaSalle (JLL).
Moreover, Shayher is understood to be carrying out due diligence for a revamped office building at 10 Barrack Street valued at about AU$200 million that is being divested by AEW.
While not directly listed in Dexus’ balance sheet, Milton Green is part of a broader shift by Australia’s biggest office landlord as its CEO Darren Steinberg seeks to recycle capital into new developments and a growing industrial portfolio.
As of late October, Dexus had attracted buyers for nearly AU$1.5 billion worth of office properties in Brisbane and Sydney. The proceeds from the deals will be used for the next generation of office assets, such as central Sydney’s Atlassian tower, as well as more warehouses and logistics assets.
Among the earlier signed transactions is the AU$420 million sale of Brisbane’s Blue Tower complex, in addition to the AU$385 million sale of 383 Kent Street in Sydney.
Notably, 383 Kent Street was bought by Charter Hall Prime Office Fund. As the new owner also holds an adjoining building – the 40,000 sq m tower at 2 Market Street office complex – there is considerable potential upside because if the site is combined it will span about 8,000 sq m.
383 Kent Street measures around 3,600 sq m. It also has two street frontages and a higher valued land. Furthermore, the site is identified as a potential tower cluster under Sydney’s latest planning controls.