Leading real estate group Dexus has purchased a Melbourne CBD precinct for $1.476 billion today.
The 105,000 square metre 80 Collins Street precinct features a 47-level office tower. Construction is underway on site for additional 35-level office tower, a retail podium with 21 tenancies and a 255-room hotel.
The extensions are set to be completed in 2021. The record deal for the company follows last year’s purchases of 52 and 60 Collins street nearby. Today’s purchase boosts Dexus’ Melbourne CBD office market portfolio from nine
Ownership of the precinct deal was split to give 75
Meanwhile, Dexus Funds Management will fund their majority share, worth $1.107 billion, through equity raising. The first two rounds of raising are planned at a fully underwritten $900 million placement to investors at $12.10 per share.
A purchase plan for shareholders will also be introduced, to raise up to $50 million.
Dexus CEO Darren Steinberg says opportunities in the Melbourne CBD office market is near an all-time low, caused by fast population growth.
“[The purchased enhances] our scale and presence in the tightly held ‘Paris end’ of the Melbourne CBD, a prime location where our customers want to be,” he said.
Steinberg also told The Australian Financial Review today “With the completion of this deal and the opposite corner at 60 Collins Street, we’ll have the ability to build a flagship office”.
Dexus’ place in the ASX remained unchanged today with a $12.71 billion market cap and shares trading for $12.50 each.