One of Singapore’s largest mall owners has gained a foothold in the Australian market, buying Cbus Property’s 33.33 per cent interest in 1 Bligh Street, Sydney for $375 million in a partnership with Dexus.
Contracts have been exchanged on the 29-storey office tower in the Sydney CBD between Cbus and the newly formed Mercatus Dexus Australia Partnership.
Singapore-based Mercatus Co-operative Limited holds an indirect 90 per cent share of the partnership, which is looking to make additional office acquisitions in the future.
Mercatus’ chief executive Tan Ser Joo said the transaction marked their first acquisition outside Singapore.
“This acquisition is part of our strategy to diversify our portfolio and to generate sustainable long-term returns,” Ser Joo said.
Cbus Property chief executive Adrian Pozzo said they would use the funds to pursue other opportunities.
“This transaction forms part of our ongoing strategy to recycle capital into our future investment and development portfolios, and to pursue other major opportunities for the business across Australia,” Pozzo said.
The sale increases Dexus’ effective ownership interest to 36.66 per cent in the 1 Bligh Street tower. Mercatus and the unlisted Dexus Wholesale Property Fund own the other portions.
Cbus and Dexus co-developed the tower, which was constructed in 2011 and designed by Architectus and Ingenhoven Architekten.
The 43,000sq m gross lettable area is tenanted by Clayton Utz, Bloomberg Australia Pty Ltd and the Commonwealth of Australia.
The property was 99.5 per cent occupied with a weighted average lease expiry of 5.4 years as at December 31, 2020.