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  • Dexus Property Group (DXS) has landed a buyer for its $285 million Brisbane CBD office building
  • The 34-storey building will be sold to investment firm Marquette
  • Settlement is expected in May
  • Dexus is planning to use 100 per cent of the sale to settle company debts
  • The property group also says the settlement of debt will help fund an ambitious Brisbane waterfront development
  • Shares in Dexus slightly fell by 0.93 per cent on Tuesday trade, closing at $9.60 apiece

Dexus Property Group (DXS) is selling a Brisbane CBD office building for $285 million to fund debt repayments.

The 34-storey building, located at 10 Eagle street, is being snapped up by investment firm Marquette. The price tag represents a 1.8 per cent premium to book value.

At the end of last year, the building was at 92 per cent occupancy — holding companies such as Wilson Parking, Australian Energy Market Operator and consultancy firm Accenture.

The afterburn of COVID-19 delays, now beginning to roll back around the country, may be a sign of revitalised office spaces around Australia.

Many companies may be confident to get their workers out of home and back in the bull pen.

This includes the 27,800-square-metre building in the heart of Brisbane's "Golden Triangle".

10 Eagle Street, Brisbane. Image sourced from Savills UK.

Dexus Chief Investment Officer Ross Du Vernet said selling 10 Eagle Street was naturally in line with the company's long-term goals.

"This transaction continues our asset recycling strategy, realising value for [Dexus and partners] while reducing our exposure to the Brisbane market," he said.

"It also provides us with an excellent opportunity to focus our leasing, asset management and development capabilities on advancing our city-shaping development project at Waterfront Brisbane".

Waterfront Brisbane is a $2.1 billion proposal by Dexus.

The company plans to install towers of up 49-stories high — making way for offices and retail spaces.

Artist's rendition of Dexus' Waterfront Brisbane. Image sourced from warterfrontbrisbane.com.au

Concerning 10 Eagle Street, Marquette Managing Director Toby Lewis said Dexus has maintained strong management of the CBD building.

"We are acquiring a great asset with an excellent tenancy profile due to Dexus’ best-in-class management," he said.

"As a Brisbane-based and focused investment firm we are thrilled to be acquiring one of Australia’s best known office towers".

Settlement of the sale is expected in May this year. Dexus and Marquette have only conditionally exchanged contracts as of yet.

Shares in Dexus shed some weight on Tuesday, falling a slight 0.93 per cent to close at $9.60 apiece.

DXS by the numbers
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