The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
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
2
print
Print
RetailDinah Lewis BoucherMon 02 Nov 20

GPT, Dexus Make Moves in Sydney Office Sector

f525f3c2-e0f8-40b0-8c23-0c91c23aa043

Listed property giant GPT Group has plans to offload a quarter interest in a landmark Sydney asset for $585 million, as the city’s office sector forges a path forward from the disruption of the pandemic.

GPT’s divestment of 1 Farrer Place comes as Dexus announced it has conditionally exchanged contracts to sell its North Sydney office tower for $273 million, just above its book value.

Prompted by unsolicited offers, the 60 Miller Street property changed hands in an off-market process to Hong Kong group Huge Linkage.

While the net sale proceeds will be used to repay debt, Dexus chief investment officer Ross Du Vernet said there was demand in the private sector of A-grade assets.

“This transaction reinforces private market demand for quality office assets in Australia’s gateway cities,” Du Vernet said in a statement.

“The sale improves portfolio composition and enables us to organically fund growth in our development and funds management businesses while preserving capacity for further capital management initiatives.”

▲ 60 Miller Street, North Sydney. Lead image: 1 Farrer Place, Sydney.


The A-grade, 17-storey Miller Street office tower spans ground floor retail across 19,350 sq m, in the centre of North Sydney’s financial district.

Anchored by Covermore and Flight Centre, the property was 97 per cent occupied as of the end of June. Settlement is subject to FIRB approval and is expected mid-next year.

Also making moves in the Sydney office sector, GPT Group announced on Monday it will offload its 25 per cent interest in 1 Farrer Place in Sydney’s CBD.

Valued at around the $2.3 billion mark, the address spans the Governor Phillip and Governor Macquarie Towers.

The sale is subject to pre-emptive first right arrangements with co-owners Lendlease, which also owns a 25 per cent interest in the expansive site, and Dexus which owns the remaining half share.

As of the end of June, the 25 per cent share reflected $585 million.

GPT’s chief executive officer Bob Johnston said the property would likely attract both domestic and offshore investors.

“Farrer Place is one of Australia’s most iconic office assets attracting high quality tenants.

“It is rare for opportunities of this quality to be offered to the market and we expect it will be well sought after by both domestic and offshore investors.”

Should a sale be successful, GPT expects to re-invest the proceeds, which would include the Group’s logistics development pipeline.


RetailOfficeAustraliado not useReal EstateSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/gpt-dexus-make-moves-in-sydney-office-sector