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Dexus Buys $1.3bn Collins Street Precinct


ASX-listed property giant Dexus is set to acquire QIC’s 80 Collins Street in a deal industry sources say is worth at least $1.3 billion.

The acquisition of the precinct was hard won by Dexus, with some of Australia’s largest listed property players vying for the QIC-controlled development. The deal was struck on a yield of around 5 per cent.

Dexus now commands a large portion of the prized “Paris end” of Collins Street, having amalgamated two sites — spanning 35,000sq m — in September 2018.

It was reported in early March that Charter Hall, Mirvac and Dexus were the remaining bidders for QIC’s mega-precinct, which was brokered by JLL and Savills.

Related: QIC Lists Up to $2 Billion of Assets

Surging demand for office space in Melbourne has pushed the vacancy rate to below 4 per cent. Pictured: 80 Collins Street.
Surging demand for office space in Melbourne has pushed the vacancy rate to below 4 per cent. Pictured: 80 Collins Street.Woods Bagot, UN Studio, Jouin Manku.


The billion-dollar mixed-use precinct comprises an existing 52-storey tower, while QIC is developing a 39-storey office tower, along with about 6000sq m of retail and a 300-key hotel managed by Singaporean brand Next.

Committed tenants include Macquarie, McKinsey and DLA Piper. Macquarie is taking 6,000sq m of the 43,000sq m tower for its Melbourne headquarters.

Multiplex is building the Woods Bagot and UN Studio-designed 6-star Green Star tower, which overlooks the Royal Botanic Gardens.

The 39-storey building has street frontage on Little Collins, Collins, and Exhibition Streets.

Funds giant QIC first flagged plans to create a major precinct around the heritage-listed Nauru House in 2008.

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Article originally posted at: https://theurbandeveloper.com/articles/dexus-acquires-13bn-collins-street-precinct-