This article is from the Australian Property Journal archive
GERMAN giant Deka Immobilien has exchanged contract to buy 452 Flinders St in Melbourne’s CBD for EUR 280 million (approximately A$460 million).
The transaction was previously reported by Australian Property Journal.
Deka acquired the asset from Dexus and the property will be added to the open-ended real estate fund Deka-ImmobilienGlobal.
Built in 1994 the building comprises 38,000 sqm of space and is fully leased to 16 tenants under long-term leases, anchored by the Jacobs Group.
Deka said the acquisition allows Deka-ImmobilienGlobal to strengthen the fund’s geographical allocation in the Asia-Pacific region with a first-class property in a prime location.
This transaction is one of the few highlights for office sector with CBRE research showing just over $15 billion in office, industrial and retail assets changed hands in the first three quarters of the year compared to $28 billion in 2019.
Office sales plunged 44% and retail fell 51% but industrial and logistics increased by 10%.
This is the third major office sale to an international investor in the past month including Singapore’s Ascendas REIT acquiring its first suburban office property in Sydney’s Macquarie Park for $167.2 million on a 6.1% yield, and its compatriot Keppel REIT also bought a Macquarie Park office from Goodman Group for $306 million on a net yield of 5.25%.
