This article is from the Australian Property Journal archive
DEXUS has trumped a strong field to secure QIC Global Real Estate’s 80 Collins Street commercial complex in Melbourne, in a deal expected to be worth more than $1.4 billion and that will stamp Dexus as the major presence the CBD’s “Paris end”.
The group paid $230 million last year for adjoining sites at 60 and 52 Collins Street, across Exhibition Street, on which it will build a 35,000 sqm prime-grade office development with an end value of as much as $650 million.
With the backing of a major offshore party, Dexus is believed to have outlasted major rivals Mirvac and Charter Hall in the race for 80 Collins Street.
The property includes an existing 52-storey officer tower, formerly known as Nauru House, which is flanked by a 43,000 sqm office building of 39 storeys and a 300-room hotel and retail complex that are both under construction.
The new office tower will become the new headquarters of Macquarie, while law firm DLA Piper recently signed up for to 4,500 sqm and McKinsey 2,700 sqm, taking pre-commitments to more than 50%. Ashurst is believed to be close to taking around 4,500 sqm.
Mirvac and Charter Hall had respectively received backing from Chinese sovereign fund CIC and Singapore’s GIC Real Estate.
In September, Dexus bought 60 and 52 Collins Street in separate deals for $160 million and $70 million. Number 60, on the corner of Exhibition Street, was acquired from the Reserve Bank of Australia, and number 52 from Marks Henderson.
Construction is currently underway on Dexus’ A-grade development at 180 Flinders Street, opposite Federation Square. Completion for both the Flinders Gate and 80 Collins Street projects is slated for 2020.
Dexus has also just exercised its pre-emptive rights to the remaining half-share MLC Centre in Sydney, buying out co-owner GPT in an $800 million deal.
Dexus and its unlisted Dexus Wholesale Property Fund will both take further 25% interests in the 67-storey A-grade tower at 19-29 Martin Place, which has 66,900 sqm of office space across 57 floors, 10,600 sqm of retail space and 308 parking spaces.
Australian Property Journal
