With some good news for the commercial property market this week, Dexus has announced a $530 million sale of a Sydney office building.
Dexus, with an Australian property portfolio valued at $33.8 billion, has sold 45 Clarence Street in an off-market transaction to Singapore based Peakstone. Peakstone is a manager of Asian capital and the sale is conditional on receiving approval from the Foreign Investment Review Board.
45 Clarence Street is a 28-level office and retail building with five levels of basement parking for 162 vehicles and a landscaped plaza; the building was completed in 1990. A major refurbishment, including the upgrade of the ground level colonnade and foyer, lifts and office levels, was completed in 2005. With a net lettable area of 32,200 sqm, the building is 100% occupied. Its major tenants include Bluestone, Eftpos Payments Australia, Bankwest and Westpac.
According to Sydney Cityscope, the property last traded at $165 million in late 1998. This deal at $530 million is apparently being struck on a five per cent passing yield.