The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
RetailAna NarvaezThu 02 May 19

Dexus Seizes Whole Block in $1.48bn Deal

TUD+ MEMBER CONTENT
e8cf34d2-8d49-41b4-ae66-ecfe11b3ea9a

Listed office giant Dexus has confirmed the details of its $1.476 billion acquisition of the 80 Collins Street precinct in a note to the ASX on Thursday.

Rumours started earlier this year about what is likely Melbourne’s largest ever property deal, forcing Dexus to confirm it was in the early stages of due diligence to acquire 80 Collins Street from funds giant QIC.

The fund manager has acquired a 75 per cent stake in the site worth $1.107 billion, while the Dexus Wholesale Property Fund will share the remaining 25 per cent.

The mammoth deal requires Dexus to tap the market for a fully-underwritten $900 million institutional placement and a non-underwritten security purchase plan for up to $50 million.

Dexus will now control about 20 per cent of the tightly-held eastern core of Melbourne’s CBD. The property giant acquired two separate sites totalling 35,000sq m at 52 Collins Street and 60 Collins Street in 2018.

The billion-dollar precinct developed by QIC comprises an existing 52-storey A-grade office tower, as well as a 39-storey building under construction which is currently 63 per cent pre-committed with 24 per cent of net lettable area currently under negotiation.

Twenty-one retail tenancies and a 255-room Next boutique hotel will make up the remainder of the 5,169sq m site.

QIC will remain on board to manage the development of the 39-storey tower, retail podium and hotel. Interim completion is expected by July 2020.

Related: Brisbane’s Eagle Street Pier to Get $1.4bn Revamp

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.


A dearth of short term supply has pushed vacancy rates in Melbourne’s CBD to 3.7 per cent.

In its quarterly real estate review, Dexus said that the Melbourne CBD office market is well placed to absorb new supply but it expects the vacancy rate to increase from next year.

Dexus chief executive Darren Steinberg said that the acquisition further enhances the group’s presence in the tightly-held “Paris end” of Melbourne’s CBD.

“Vacancy in the Melbourne CBD office market is nearing an all-time low, supported by strong population growth and significant pre-commitments across the upcoming supply pipeline,” Steinberg said.

The first two of four tranches, totalling $833 million, will be paid by June 2019, while the third and fourth tranche — totalling $274 million — will be paid in July and August 2020.

Dexus shares went into a trading halt prior to the announcement on Tuesday.

HotelRetailAustraliaMelbourneFinanceReal EstatePlanningPlanningDeal
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
The Dorcas Street project replaces demolished walk-ups with 131 modern apartments, the first step in a multi-stage redev…
LATEST
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/dexus-seizes-whole-block-in-melbournes-biggest-ever-property-deal
SHARE
print
Print
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >