In a huge show of confidence in the Sydney commercial office market, the Dexus Property Group has gone on an almost $1.1 billion shopping spree.
In a huge show of confidence in the Sydney commercial office market, the Dexus Property Group has gone on an almost $1.1 billion shopping spree, agreeing to purchase two 25% stakes in the Sydney MLC Building at $361.3 million each. They will make the purchase through buying one interest directly and one through a fund it manages, The Dexus Wholesale Property Fund.
Dexus, one of Australia’s largest real estate groups, directly own $11 billion of office and industrial properties and manages a further $11.7 billion of office, retail and industrial properties. The group is listed on the Australian Securities Exchange and is managed by DEXUS Funds Management Ltd. It was formed in 2004 by stapling together units in three listed trusts and some unlisted funds which were then managed by Deutsche Bank.
According to Sydney Cityscope, the Harry Seidler designed MLC Centre, at 19 Martin Place, comprises 67 levels and parking for 297 vehicles over four basement levels. It is still one of the world's tallest reinforced concrete buildings at 228 metres high. With a building area of over 73,000 sqm, its tenants include the US Consulate, Australian Government Solicitor, the GPT Group and a shopping complex with 90 shops, a tavern and the Theatre Royal.
Dexus is also set to purchase a newly renovated building at 100 Harris Street, Pyrmont for $327.5 million. The former wool store was once known as the Schute, Bell, Badgery and Lumby Store and dates back to the late 1800s. After a huge renovation it now comprises 26,000 sqm of office space over six levels and its anchor tenants include Domain and WeWork.
The building traded pre-refurbishment at $72.7 million in 2015.