ASX-listed Dexus has struck a deal to sell an A-grade office in Sydney for $293.1 million, adding to the REIT’s $1.8 billion of property sales in the 2023 financial year.
Dexus sold its 1 Margaret Street office building, located in the western corridor of the Sydney CBD with a weighted average lease expiry (WALE) of 2.1 years and occupancy of 93.7%.
The sale price was in line with the 30 June 2023 book value, with settlement expected in October 2023.
The REIT said it will attain a $50 million equity interest in the trust that will hold the property and be managed by the incoming purchaser.
The sale comes as office vacancy rates in Australia’s capital cities increased modestly over the last six months, driven by an uptick in new office supply.
New Property Council of Australia figures showed that showed overall CBD vacancy increased from 12.6% to 12.8% nationally, with Sydney’s vacancy rate slightly increasing from 11.3% to 11.5%.
Recent office deals include ASX-listed Charter Hall’s sale of its leasehold interest in its UNSW Kensington office building in Sydney’s eastern suburbs for $80 million in August.
In July, property fund management company RF CorVal sold the Wyndham Corporate Centre in Bundall to the City of Gold Coast for $46.25 million, and ASX-listed Centuria Office REIT sold the 54 Marcus Clarke Street office building in Canberra for $23 million.
In June, Dexus sold the Axxess Corporate Park in Mount Waverley in Melbourne’s southeast to Gateway Capital and Cadillac Fairview for $315 million.
At the start of the year, Dexus sold its the Deepwater Plaza sub-regional shopping centre in Woy Woy, NSW for $112 million.