Deka Immobilien in for $450m for Flinders St Office

10 September 2020

Dexus are finalising the sale of 451 Flinders Street to Deka Immobilien in a deal worth c.$450m.

The property at 452 Flinders Street, is a 38,000sq m A-grade office building which includes 17 levels of office space, a three-level basement car park, ground floor retail and end-of-trip facilities. In 2019, the property picked up V/Line as a major tenant for 5,972 square metres.

Dexus paid Stockland $194 million for 452 Flinders Street in 2001 and invested funds a recent upgrade with a the new lobby, finishes, flooring, feature lighting, breakout areas and a café.

The Dexus wholesale fund is under some pressure from its wholesale investors to release capital from the fund but has indicated that sales of assets below book values is unwarranted.

If the acquisition by Deka proceeds, it will add to a growing basket of office assets in Australia. In January the group acquired 66 Eagle Street Brisbane from Lend Lease & ADIA in a $380m deal and in December 2018 paid $58.6m for 64 Castlereagh Street in Sydney.