Property giants Dexus have cashed in on one of their office assets after selling a North Sydney tower for 3% above its book value.
The 17-storey office building, at 60 Miller Street, was purchased by a Hong Kong investor in an off-market deal worth $273 million, taking Dexus’ total sales in recent months past the $2 billion mark.
Dexus Chief Investment Officer, Ross Du Vernet said that the sale follows a growing trend of investors looking for prime office towers in the country’s leading cities.
This transaction reinforces private market demand for quality office assets in Australia’s gateway cities.Dexus Chief Investment Officer – Ross Du Vernet
Located in the centre of North Sydney’s financial district, the tower was built in 1987 and boasts 19,350 sqm of a-grade office space.
As of June 30, the property was 97% occupied with tenants including Covermore and Flight Centre.
Dexus announced it will initially use the funds to repay debt with many exciting developments currently in the pipeline including a $446.2 million medical centre in Adelaide.
The sale improves portfolio composition and enables us to organically fund growth in our development and funds management businesses, while preserving capacity for further capital management initiatives.Dexus Chief Investment Officer – Ross Du Vernet