Following last year’s acquisition of 52 and 60 Collins Street, Dexus has made another big play purchasing the 80 Collins Street precinct for a total of $1.476 billion, with the first tranche of payment at $1.09 billion settled last week.
Dexus will acquire 75% of ownership interest while Dexus Wholesale Property Fund acquires 25% of ownership interest. This increases office stock owned or managed by Dexus to about 20% of total stock in Melbourne CBD’s Eastern Core.
The property comprises three major components: an existing 52-storey, 162-metre high office tower, formerly known as Nauru House, completed in 1977, when it was Melbourne’s tallest building. The building provides a net lettable area of 50,600 sqm and 220 basement car parking spaces. The concrete façade was restored in 1992 to 1994 at a cost of $46 million and the foyer was modernised in 1997 to 1998. Various levels were also refurbished in 2008.
The building is 95% leased with major tenants including the Minister of Finance and Cenitex.
The second component, the 80 Collins South Tower, is being developed by QIC Ltd with Multiplex as builder, at the southern end of the 5,169 sqm site. With 63% of the space pre-committed, the tower will have 38 levels and comprise 43,000 sqm office space with typical floor plates of 1,250 to 1,350 sqm. It is targeting a 5-star NABERS energy rating and a 6-star Green Star rating.
The third component will include a 20-level 255-room hotel operating under the NEXT brand, which is under construction to the Little Collins Street frontage, and a 5,800 sqm retail plaza connecting all three towers. 83% of the retail space is pre-committed.
The $800 million redevelopment was designed by Woods Bagot.