Dexus Recycles Sydney Assets To Pay Down Debt

Dexus is on a divestment path as it recycles key Sydney assets to pay down debts.

The ASX-listed real estate investment fund announced it had exchanged contracts to sell 201 Miller Street in North Sydney for $152.4 million.

The sale of the asset, owned by the Dexus Office Partnership, is subject to the Foreign Investment Review Board (FIRB) approval.

Dexus chief investment officer Ross Du Vernet said the proceeds of the sale of the 14,600sq m B-grade office block would be used to repay debt.

“This transaction continues our strategy of selective asset recycling and reinvesting into higher returning opportunities, while realising value for both Dexus and our Dexus Office Partnership,” Du Vernet said.

The property had a book value of about $77 million last year according to Dexus reports with Nestle Australia as its anchor tenant. The officer tower was built in 1972 and Dexus acquired the property in 2014.

The group sold an office block at 60 Miller Street in November last year for $273 million.

Settlement on 201 Miller Street was expected in mid-December 2021.

The group settled on the sale of a 50 per cent interest in Grosvenor Place this month after the initial transaction was reported in November 2020.

Dexus realised $694 million from the $925-million sale of the property, with the remainder going to the Dexus Office Partnership.

The existing co-owner of the landmark Sydney tower, China Investment Corporation, boosted its stake and acquired the additional half interest in the property.

The building was sold at a discount of around 5 per cent to the property’s book value at the end of June 2020.

The net sale proceeds would initially be used to repay debt.