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Dexus Flags Major Office Development on Collins Street

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Property giant Dexus has snapped up the Reserve Bank's Melbourne headquarters in a $160 million deal.

In a slightly smaller second deal Dexus also acquired the property next door, at 52 Collins St, for $70 million.

Dexus flagged plans to amalgamate the two sites and develop a total 35,000sq m in the medium term.

"These acquisitions provide us with a presence in the tightly-held 'Paris end' of Collins Street in the Melbourne CBD," Dexus chief executive Darren Steinberg said.

"They also present us with a unique opportunity to undertake an office development creating long term value for investors in the next supply cycle."

Related: QIC Lists Up to $2 Billion of Assets

Dexus office and industrial executive general manager Kevin George said Dexus expected office demand in Melbourne to remain strong.

"[With] the vacancy rate to fall below 4 per cent next year and remain well below long term averages for the foreseeable future."

Surging demand for office space in Melbourne has pushed the vacancy rate to shrink below 4 per cent.

Settlement for 60 Collins St is expected by the end of October, while 52 Collins St is expected to settle in July 2019.

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Article originally posted at: https://theurbandeveloper.com/articles/dexus-to-aquire-two-neighbouring-melbourne-sites