US-headquartered LaSalle Investment Management has exchanged contracts to buy a grade-B office in North Sydney from Dexus for $152.4 million.
The 14,600 sqm building at 201 Miller Street is located near North Sydney’s largest retail precinct.
The property was 84% occupied with a weighted average lease expiry of 1.9 years, as of October this year.
The Dexus Office Partnership, in which Dexus holds a 50% interest, owns the building.
“This transaction continues our strategy of selective asset recycling and reinvesting into higher returning opportunities, while realising value for both Dexus and our Dexus Office Partner,” said Dexus Chief Investment Officer Ross Du Vernet.
The transaction is expected to close this month, with Dexus using the sale proceeds to initially repay debt.
The sale was the result of an on-market sales campaign conducted by CBRE and Knight Frank.
The deal comes after Dexus sold a Sydney CBD office to Charter Hall’s prime office fund for $385 million.
There has been a flurry of Sydney office deals in past weeks, most recently Stadia Capital’s purchase of a Harry Seidler-designed office building in North Sydney from a consortium of investors for more than $80 million.
The Australian Unity Office Fund agreed to sell a grade-B office in Parramatta for $66 million this week, while Singapore-listed CapitaLand Integrated Commercial Trust purchased two grade-A office buildings in Sydney for $330.7 million last week.
Singapore-listed Keppel REIT recently purchased a grade-A office development in North Sydney for $327.7 million.
Outside of Sydney, GIC and Charter Hall recently formed a joint venture to buy the 50 Marcus Clarke office building in Canberra’s CBD for $335 million.
ISPT bought the headquarters of Victoria’s Country Fire Authority in Melbourne’s eastern suburbs for $35.8 million, while Cromwell Property Group bought a 24-storey office building in Brisbane’s CBD for $184.7 million.