This article is from the Australian Property Journal archive
DEXUS has furthered its billion-dollar-plus selldown of office towers along the east coast, with Marquette Properties and Lendlease teaming up to buy the Blue Tower complex in Brisbane’s CBD for $420 million.
Investors have been backing a rebound of Australia’s city office markets, and the newest deal comes as Sydney and Melbourne gear up for a return to the office with governments and business hoping to entice workers back into the CBDs.
The Blue Tower complex at 12 Creek Street, in the “Golden Triangle” precinct, was owned jointly by Dexus and the Dexus Wholesale Property Fund. The sale will realise net proceeds of $391 million.
Dexus bought 12 Creek Street in 2012 for $241.6 million. The 32-level, 38,746 sqm, A-grade office building includes The Annex which comprises a new boutique office space with a rooftop terrace that was completed by Dexus in 2021.
Key tenants include BDO Services, Moray & Agnew and AFSA.
Settlement of the sale is expected in March.
Dexus has offloaded $1.5 billion worth of office assets part of the group’s strategy of recycling core investments and pursuing higher returning opportunities and development pipeline. Divested assets include 383-395 Kent Street and 309-321 Kent Street in Sydney, and 140 & 150 George Street, Parramatta.
“This divestment enables us to recycle capital into our high returning development pipeline, with our Waterfront Brisbane development expected to commence shortly given leasing momentum,” Dexus chief investment officer, Ross Du Vernet said.
“We are excited about the opportunity to focus our leasing, asset management and development efforts on this new development project.” Dexus has just secured Deloitte and MinterEllison as the first major office tenants for the $2.1 billion Waterfront Brisbane project, with the leases totalling about 19,300 sqm.
Unveiling its half-year results last week, Dexus executive general manager, office, Kevin George said that while Omicron has delayed the return to the office, the country’s biggest owner of office towers expects the return to take hold in the coming months.
Also among its major developments are the future headquarters of Atlassian in Sydney’s Tech Central precinct, the nearby Central Place development with Frasers, as well as 60 Collins Street in Melbourne.
On the buy side, Marquette has partnered with Lendlease’s $1.5-billion Real Estate Partners 4 Fund in acquiring the asset – its second purchase of distinctly coloured tower from Dexus in the Golden Triangle within a year. It bought the 34-level A-grade Gold Tower at 10 Eagle Street in April for $285 million from co-owners Dexus and Canada’s CPP Investment Board.
