Dexus Sells Melbourne Carpark to GPT for $87m

Australia's largest office landlord Dexus has announced the sale of an eight-level commercial car park in the Melbourne CBD.

Listed property group GPT has confirmed the purchase, paying $87.1 million for the sought-after Flinders Street location.

The site has an approved planning permit for the development of a mixed-use 47-storey tower on Flinders Street and a 14-storey tower on Flinders Lane.

The 2087sq m car park had been the subject of increasing interest due to its strategic significance.

According to market sources, no fewer than four parties bid for the site, raising the initial asking price of $70 million.

Related reading: Dexus Rides Wave of High Office Demand

Dexus chief executive Darren Steinberg said: “These latest sales continue our successful track record of securing trading profits from various types of properties.”

Dexus said the sale would contribute about $49 million pre-tax to the group’s trading profits for full-year 2019.

Agents on the deal were CBRE’s Neva Courts, Kiran Pillai, Josh Rutman and Lewis Tong.

Related reading: Dexus Wins Approval for $426m Hyde Park Hotel

"With protected views across the Yarra River and proximity to a wide range of amenity, parks and sporting precincts, this site is in an enviable location unmatched in Melbourne for a residential or mixed-use development," CBRE's Josh Rutman said.

GPT co-owns neighbouring 8 Exhibition Street and may retain the car park's 542 bays for its building’s tenants. Although at an eye-watering $42,000 per square metre it’s unlikely the site will remain a commercial car park too far into the future.