Major Office landlord, Dexus has confirmed the sale of 45 Clarence Street, Sydney for $530m to Peakstone.
Dexus today announced that it has conditionally exchanged contracts to sell . The sale will realise net proceeds of $530 million, which is consistent with the property’s book value at 31 December 2019 and supports the strong investment demand for prime quality office assets in the Sydney CBD.
45 Clarence Street is a 28-level, A-grade office tower across 32,000 square metres, located in the western corridor of Sydney’s financial district and was built in 1990 by Mirvac and State Authorities Superannuation Board. At 31 December 2019, the property was 100% occupied and had a weighted average lease expiry of 3.3 years. The property's major tenant is logistics giant Qube Holdings.
The sale was concluded following the receipt of an off-market unsolicited offer from Peakstone, a Singapore headquartered manager of Asian capital, and is subject to the purchaser receiving FIRB approval.
It is believed that Peakstone may be working with ZoneQ Investments who acquired the adjoining property at 55 Clarence Street for about $255 million from Boston-based investment manager AEW Capital Management in 2018.
Darren Steinberg said: “This transaction reinforces the resilience of prime quality office asset values in the Sydney CBD and enables us to recycle capital into higher returning opportunities that we expect will become more prevalent over the coming period.”
The transaction follows the completion or exchange of more than $800 million of property divestments across the group during FY20. The net sale proceeds will initially be used to repay debt.
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