The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
URBAN LEADER AWARDS ARE BACK! START YOUR NOMINATIONS
URBAN LEADER AWARDS ARE BACK! START YOUR NOMINATIONS
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
ADVERTISEMENT
SHARE
1
print
Print
OtherAna NarvaezTue 15 Sep 20

Dexus Takes Stake in Atlassian Skyscraper, Offloads Grosvenor Place

dcaac209-6c29-4932-af1b-b1d00b06eb05

Dexus has taken a 50 per cent-plus stake in Atlassian’s $1-billion timber tower anchoring Sydney’s tech precinct next to Central Station.

While the ASX-listed landlord declined to comment on the speculation, industry sources said that the transaction was struck on a “low 4s” cap rate—reflecting the strong occupancy profile of the Nasdaq-listed tech giant Atlassian, who will remain an equity partner in the project.

The 40-storey skyscraper has 60,000sq m of net lettable area, with Atlassian’s headquarters taking at least 85 per cent of the tower’s office space, leaving just six floors.

Based on comparable office rents—Poly’s 210 George Street is leasing for around $1,300 a square metre—and a sub 4.5 per cent cap rate, the 60,000 square metre office likely transacted around the $28,000 per square metre-mark.

Dexus pipped fund manager ISPT to the sought-after partnership and is understood to be finalising negotiations with Atlassian.

The timber skyscraper will add to its neighbouring $2.5-billion twin-tower Central station plans, which will bring 150,000sq m of net lettable area to the market once developed.

▲ Dexus is selling a 50pc stake in the Harry Seidler-designed Grosvenor Place.


Meanwhile, a 50 per cent stake in Dexus’ 44-storey Grosvenor Tower has hit the market. The group’s Grosvenor Place Holding Trust owns a 37.5 per cent interest in the tower, according to financial statements.

A Dexus spokesperson confirmed that the group is selling down its entire interest in the tower, which lost anchor tenant Deloitte to AMP’s Quay Quarter last year.

Chinese sovereign wealth fund China Investment Corporation is believed to have picked up another 50 per cent to add to its existing 25 per cent ownership in the tower, The Australian first reported last week.

In Melbourne, Dexus offloaded the 22-storey 452 Flinders Street to German investor Deka Immobilien for $440 million. Chief executive Darren Steinberg said that the group will continue to recycle assets to invest in more resilient markets.

“With Australia in a recession, we are preparing for subdued tenant demand and increased vacancy levels in our core office markets,” Steinberg said.

The country’s largest office landlord reported that it collected 98 per cent of its rent across the June quarter, while the group’s office portfolio occupancy remained steady at 95.6 per cent.

RetailAustraliaFinanceTechnologyReal EstatePlanningPlanningDeal
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Scape PBSA Kingsford EDM
Exclusive

It Takes More Than a Room: PBSA Evolves to Meet Student Demands

Clare Burnett
7 Min
Exclusive

Soheil Abedian: What’s Driven the Man Who’s Transformed a City

Phil Bartsch
7 Min
Exclusive

Robots Not a Miracle Cure for Housing Productivity Crisis

Vanessa Croll
6 Min
Exclusive

Where 600 Wealthy Families Are Putting Their Millions

Taryn Paris
6 Min
Brique Projects EDM
Exclusive

Brique Thrives in Cauldron of SE Queensland Development

Clare Burnett
7 Min
View All >
Scape PBSA Kingsford EDM
Exclusive

It Takes More Than a Room: PBSA Evolves to Meet Student Demands

Clare Burnett
Queen's Whard EDM
Hotel

Star Back to Square One After Queens Wharf Deal Collapses

Clare Burnett
Industrial

ISPT Files Plans for Dandenong Mega-Logistics Project

The super-backed developer and investor is planning a $1.1-billion precinct across the 62ha site…
LATEST
Scape PBSA Kingsford EDM
Exclusive

It Takes More Than a Room: PBSA Evolves to Meet Student Demands

Clare Burnett
7 Min
Queen's Whard EDM
Hotel

Star Back to Square One After Queens Wharf Deal Collapses

Clare Burnett
3 Min
Industrial

ISPT Files Plans for Dandenong Mega-Logistics Project

2 Min
Infrastructure

Invest Gold Coast Launches Hunt for $500m Arena Partner

Renee McKeown AND Taryn Paris
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/dexus-takes-stake-in-atlassian-skyscraper-offloads-grosvenor-place