Dexus sells Sydney office for 21pc discount

DEXUS has offloaded its A grade office building at 1 Margaret Street in Sydney, generating $293.1 million in a 21% discount to the asset’s June 2022 book value.

Quintessential snapped up the 1 Margaret Street, located in the western corridor of the Sydney CBD and boasts a WALE of 2.1 years and an occupancy of 93.7%.

Dexus listed the asset back in April, alongside its 44 Market Street asset, 1 Margaret Street is also known as Dexus Place, comprising 18-level prime-grade tower near Barangaroo, returning $20.4 million in net passing income.

The group sold its A-grade office tower at 44 Market Street in June, with the $393.1 million sale price marking a 17.2% discount to book value.

Also in June, Dexus successfully sold a business park in Melbourne’s south eastern suburbs for $306.2 million, at a 7.4% premium to its most recent valuation.

The $293.1 million in sale proceeds for 1 Margaret Street was in line with the assets 30 June 2023 book value.

Dexus is set to attain a $50 million equity interest in the trust that will hold the property and be managed by the incoming purchaser.

Dexus recently reported a $1.184 billion devaluation of its portfolio, with the major office tower landlord swinging to a full-year loss of $752.7 million.

Settlement for the transaction is expected to occur in October 2023.