Dexus has sold its interests in two offices in Sydney’s CBD and Parramatta totalling $555m – the company’s latest Sydney office disposals in recent weeks.
The company divested its 50% interest in 309-321 Kent Street, Sydney for $401 million, while the Dexus Office Partnership sold the 140 & 150 George Street, Parramatta property to Mintus for $154 million.
The Kent Street property comprises 47,702 sqm of lettable area across two grade-A office buildings and was 93% occupied with a weighted average lease expiry (WALE) of 3.5 years.
The 150 George Street asset is a 21,964 sqm grade-A office that recently became vacant following the departure of the Commonwealth Bank, while the 140 George Street property is an adjacent 2,271 sqm site.
Dexus said it would use the net proceeds of both sales to repay debt.
The deals follow Dexus’ sale of a Sydney CBD office to Charter Hall’s prime office fund for $385 million last month, representing an initial passing yield of 5.1%.
The 17,928 sqm, grade-A office building at 383-395 Kent Street is located in the western corridor of the Sydney CBD.
Dexus also sold the 14,600 sqm office at 201 Miller Street, North Sydney to LaSalle Investment Management for $152.4 million last month.
There have been numerous Sydney office deals in recent months, including Abacus Property’s acquisition of a Sydney CBD office building for $250 million in late December.
Last month, Stadia Capital purchased a Harry Seidler-designed office building in North Sydney from a consortium of investors for more than $80 million, as the Australian Unity Office Fund sold a grade-B office in Parramatta for $66 million.
Singapore-listed CapitaLand Integrated Commercial Trust purchased two grade-A office buildings in Sydney for $330.7 million, while Keppel REIT purchased a grade-A office development in North Sydney for $327.7 million.
Beyond Sydney, Irongate Group recently snapped up a 50% interest in an office building in Melbourne’s Cremorne for $130 million, while ISPT bought the headquarters of Victoria’s Country Fire Authority in Melbourne’s eastern suburbs for $35.8 million.
In Brisbane, Forza Capital purchased a grade-B office building in the Brisbane CBD for $41 million, while Cromwell Property Group bought a nearby office building in Brisbane’s CBD for $184.7 million.
In Canberra, Growthpoint Properties recently bought a grade-A office building in Canberra for $84.6 million, in addition to GIC and Charter Hall recently forming a joint venture to buy the 50 Marcus Clarke office building in Canberra’s CBD for $335 million.
