This article is from the Australian Property Journal archive
DEXUS has defied repricing within the office market, selling a business park in Melbourne’s south eastern suburbs for $306.2 million, at a 7.4% premium to its most recent valuation.
The sale of Axxess Corporate Park in Mount Waverley takes total divestments in FY23 for the property giant to $1.5 billion.
The suburban asset trading at a premium is in stark contrast to the reckoning being faced by CBD office towers; Dexus’ has just confirmed that its 44 Market Street tower in the Sydney CBD had sold at a 17.2% discount to book value, and it is also reportedly selling 1 Margaret Street at a 21% discount to the book value, while Charter Hall yesterday announced 3.7% had been cut from the value of its office portfolio.
Dexus said the sale is subject to Foreign Investment Review Board approval. Settlement is expected in early July.
Located on the corner of busy Ferntree Gully Road, Axxess Corporate Park offers smaller suites and units of 250 sqm through to larger floorplans of 2,000 sqm, and has two on-site cafés, a childcare centre, and parking.
Dexus said in its half-year report that its portfolio occupancy reducing slightly to 97.4% was driven predominantly by expiries at Axxess Corporate Park and a distribution centre in Adelaide.
The office market has been holding its breath waiting for the June revaluations, expecting broad-brushed markdowns following a period of few major deals landing. MSCI head of Pacific real assets research, Benjamin Martin-Henry has said price discovery has become more and more challenging for both buyers and sellers, resulting in restraint in the market.
