Dexus sells 12 Creek Street for $391m

23 February 2022

Dexus have confirmed the sale of 12 Creek Street Brisbane which it put to the market late last year.

The Blue Tower Complex, which is co-owned by Dexus and the Dexus Wholesale Property Fund, comprises two office towers sharing a 3,026sqm site, in the heart of Brisbane’s Golden Triangle. The buildings have a combined net lettable area of 38,500sqm, and are 85 per cent leased with key tenants across the buildings including BDO Services, Moray & Agnew and AFSA. Dexus completed the 2nd building, known as The Annex in 2020 at a cost of $32m.

The buildings have the potential to generate at fully let net income of $27,190,848 reflecting a yield of 6.9%.

The buildings were reported to have been acquired by Lendlease’s Real Estate Partners 4 Fund in a Joint Venture with Marquette Properties. The groups intend to reposition the blue tower as a premium offering in the Brisbane market, joining one of five other offers.

Agents Justin Bond and Paul Roberts from Knight Frank and Bruce Baker and Flint Davidson from CBRE were appointed to sell the properties.

Settlement of the sale is expected in March 2022.

Dexus Chief Investment Officer, Ross Du Vernet said: “This divestment enables us to recycle capital into our high returning development pipeline, with our Waterfront Brisbane development expected to commence shortly given leasing momentum. We are excited about the opportunity to focus our leasing, asset management and development efforts on this new development project.”

Dexus originally acquired the property in 2012 for $241.6m from the Australian Property Growth Fund.