Dexus Sells Office Asset for $231 Million

Dexus has sold a campus-style office asset in Macquarie Park for $231 million.

The country’s largest office landlord sold a 100 per cent interest in the three buildings to an undisclosed buyer in an off-market sale.

Dexus submitted a development application for the site with the City of Ryde for three A-grade timber buildings totalling 26,000 square metres. The proposal is unapproved.

Dexus chief investment officer Ross Du Vernet said that Macquarie Park was a non-core market for the group, which is on track to book 4 per cent to 5 per cent growth this financial year.

“We have added significant value over the past 3.5 years at 11 Talavera Road, leasing 26,726 square metres to take occupancy to 95 per cent,” Du Vernet said.

Related: Office Vacancy Rates Hit Decade Lows

Located approximately 10 kilometres from Sydney, Macquarie Park is the largest business precinct outside of the CBD.

Dexus' Talavera Road asset is located in Sydney’s “innovation district”. Stockland is currently developing a $500 million technology hub nearby, while Meriton has flagged plans for a 27-storey tower up the road.

Earlier this month, developer Visionary lodged an application with the City of Ryde for a $1 billion-plus mixed-use development for four towers in Macquarie Park.

Dexus’ funds from operations was up 9.8 per cent to $353.3 million on the previous period, according to half-yearly results released in February.

Hero image: An artist rendering of an HDR-designed 11 Talavera proposal, lodged by Dexus.