This article is from the Australian Property Journal archive
DEXUS has exited its campus-style Macquarie Park office complex and shift focus to core market opportunities, in one of two deals across the major markets totalling around $575 million struck this week.
Meanwhile, GPT Wholesale Office Fund has reportedly agreed to exercise its pre-emptive right to buy out 2 Southbank Boulevard on Melbourne’s city fringe.
Dexus revealed it has sold the A-grade 11 Talavera Road asset in Sydney’s north shore in an off-market deal for $231.2 million, just above book value.
The property has three buildings with a total net lettable area of 35,832 sqm, with typical floorplates of 2,500 sqm and 1,049 on-site parking spaces.
“We have added significant value over the past 3.5 years at 11 Talavera Road, leasing 26,726 sqm to take occupancy to 95.0%,” chief investment officer, Ross Du Vernet said.
Some 4,000 sqm is available on level one of Building A, while 1,741 sqm suite at Building B is under offer. Expiries totalling around 1,680 sqm across three suites will occur in March and May.
Dexus has submitted a development application for a new 26,000 sqm tower on the site, but Du Vernet said Macquarie Park is a non-core market for Dexus.
“This divestment provides capacity to fund development and acquisition opportunities in core markets, in line with our stated strategy,” he said.
The property is located on the corner of Lane Cove Road, close to Macquarie Park train station and offers access to the M2 Motorway.
Settlement is expected to occur in late June 2019.
Chinese-backed group Visionary lodged an application earlier this month for a $1.1 billion, four-tower development with residential, hotel and office space in the suburb, at 86 & 88 Waterloo Road and 8 Cottonwood Crescent.
In Melbourne, the unlisted GPT fund will buy out the 38-storey Southbank tower from Frasers Property Australia for $342 million, reflecting a 5% yield.
The A-grade 55,000 sqm tower at Freshwater Place saw an overhaul following the exit of key tenant PwC in 2017, with some 34,000 sqm of office space leased across new and renewed deals since. It currently has 98% occupancy by area and a weighted average lease expiry of almost six years, and a tenancy profile boasting heavy hitters such as Apple, CUB, WPP and Kraft Heinz.
Frasers Property – then Australand – developed 2 Southbank Boulevard in 2005 and had retained a half-share since.
Ongoing refinement has seen the tower achieve a 6 Star Green Star Performance rating – one of only six buildings in Australia to do so – and it is also accredited with a 5.5 Star NABERS building energy rating with green power, or 4.5 Star NABERS energy rating without.
Last month, GPT put a 50% share of the MLC Centre in Sydney’s CBD to the market that could fetch more than $800 million.
Australian Property Journal
