Dexus is offloading $555 million in Sydney office assets at Kent Street in the CBD and George Street in Parramatta.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Dexus is offloading $555 million in Sydney office assets as it moves towards other investment opportunities.</p><p></p><p>The group sold its 50 per cent interest in 309-321 Kent Street, Sydney for $401 million to Hong Kong-listed Liu Chong Hing Investment Limited and Ashe Morgan.</p><p>The two office buildings were 93 per cent occupied with a weighted average lease expiry of 3.5 years.</p><p></p><p>The transaction was a continuation of the duo’s office buying spree which also included <a href="https://www.theurbandeveloper.com/articles/cornerstone-properties-offloads-cbd-tower-for-210m">310 Ann Street, Brisbane for $210 million</a> in March.</p><p></p><p>The other A-grade office building at 150 George Street, Parramatta and adjoining 2271sq m site also sold, just before Christmas, for $154 million to an undisclosed buyer in an unsolicited, off-market deal.</p><p>Commonwealth Bank of Australia recently vacated the site with 21,964sq m of space which has approval for a 33-storey office building.</p><p></p><p></p><p>The proceeds of the sales would initially be used to pay off debts as the ASX-listed company works towards “short-term growth prospects in the industrial and healthcare sectors”. </p><p></p><p>Dexus <a href="https://www.theurbandeveloper.com/articles/dexus-industria-reit-jandakot-airport-acquistion">picked up Perth’s Jandakot airport</a> and surrounding parcels for $1.3 billion as well as <a href="https://www.theurbandeveloper.com/articles/dexus-furthers-petrol-station-push-in-queensland">growing its convenience retail REIT</a> in recent deals worth more than $21 million.</p><p></p><p>Despite the investment-strategy shift, the group was still confident in the office market which Dexus chief executive Darren Steinberg <a href="https://www.theurbandeveloper.com/articles/fast-track-office-return-dexus-boss-says">expected to improve after Australia Day</a>.</p><p></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/6d3f00b4-25dd-4591-ba08-51a9d37c3d5e.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Dexus got the green light for the tower on George Street with 45,700sq m of office space from the Parramatta City Council in April 2019.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>There were also approved <a href="https://www.theurbandeveloper.com/articles/dexus-ups-1bn-collins-street-office-offering">plans to build a new 159-metre Collins Street office </a>tower, banking on the resurgence of Melbourne’s office market.</p><p></p><p>The company revalued its 189 assets in mid-December and reported 34 office, 1 healthcare and 89 industrial properties had lifted in value in the past six months, up $421 million or 2.4 per cent.</p><p></p><p>Steinburg said the value of its office portfolio increased 0.6 per cent and industrial jumped 8.7 per cent on prior book values.</p><p></p><p>“As evidenced by these latest independent valuations, the value of Dexus’ quality portfolio has remained robust in a Covid-impacted environment,” he said.</p><p></p><p>“We have continued to see growth in asset values for well-located industrial and logistics facilities, supported by strong investment demand.</p><p></p><p>“We anticipate the post-lockdown environment will continue to see global capital attracted to Australia, benefiting quality assets across the core property sectors.”</p></div></div></div></div></div>

Dexus has sold $555 million in Sydney office assets at 309-321 Kent Street in the CBD and 140-150 George Street, Parramatta....

Joint-venture developers Urban, Hamilton Marino and CHT Architects signed The Ascott Limited’s new hotel brand Lyf on their 105-room Collingwood building slated to open in 2022.

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Victorian developers are forging ahead with new hotel plans as operators and project timelines are updated on two Melbourne sites.</p><p>Ashe Morgan “confidently” signed Nesuto to their $100 million 211-room hotel in The District, Docklands which is expected to be built early next year and opened in 2023.</p><p>Joint-venture developers Urban, Hamilton Marino and CHT Architects also signed The Ascott Limited’s new hotel brand Lyf on their 105-room Collingwood co-living building, slated to open in 2022.</p><p>This comes as dismal travel results are recorded for the state in June by the Australian Bureau of Statistics. </p><p>They reveal a 99.3 per cent drop in international visitors to 1,140 and a near 100 per cent drop in international students as Covid-19 cases started to pick up in Victoria.</p><p>There were just 70 long-term visitor arrivals and 660 short-term visitors in June 2020 compared to solid growth in arrivals for the state since 2010. </p><p>In 2019 people from Singapore, China and New Zealand represented the largest number of visitors while in 2020 the arrivals came from New Zealand, the United Kingdom and United States.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Short-term visitor arrivals in Victoria</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/211f3fb9-578f-4495-bf83-67fb05567ac0.jpg" width="800"/></picture><div></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><sub><sup>^ Source: Australian Bureau of Statistics </sup></sub></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>CommSec senior economist Ryan Felsman said that with conditions worsening, not much of an improvement was expected for the state.</p><p>“The renewed lockdown in Melbourne and the re-closure of Queensland’s state border in recent weeks have made life for beleaguered tourism operators even more difficult,” Felsman said.</p><p>According to the ABS there was some improvement nationally when comparing June to May with an increase of international visitors by 56.8 per cent and returned residents by 17.8 per cent.</p><p>Related: <a href="https://theurbandeveloper.com/articles/hotel-performance-str-airdna-occupancy">Global Hotel Performance Up from Rock Bottom</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><hr/></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><h2><strong>Melbourne hotel operators move in</strong></h2><p>The District Docklands chief executive George Karabatsos said they were moving forward with their long-term <a href="https://theurbandeveloper.com/articles/ashe-morgans-67m-docklands-fresh-food-precinct-starts-construction-">plans </a>for the site.</p><p>“Despite current market conditions, we are confident retail and tourism remains crucial to Victoria’s rebuild post-Covid-19,” Karabatsos said.</p><p>Located at 80 Waterfront Way, Nesuto Docklands Apartment Hotel will form part of the open-air precinct of The District Docklands. </p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/84edfe80-8701-4208-900e-833bee61e83d.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ AsheMorgan signs the Nesuto Docklands Apartment Hotel as a milestone expansion to Melbourne’s The District Docklands mixed use precinct.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The partnership sees Nesuto add its first Victorian property to its existing portfolio of 11 operating, and one in-the-pipeline, hotels in Australia and New Zealand.</p><p>The apartment hotel, designed by Melbourne-based architects Fender Katsalidis, will feature 58 one-bedroom, 20 two-bedroom and 133 studio apartments.</p><p>The Collingwood hotel development at 42 Oxford Street sits within Urban’s C&amp;L development on a triple street block along Cambridge, Langridge and Oxford Streets.</p><p>The hotel is expected to attract “millennials” and the “millennial-minded” who will use a mobile app to tap or swipe to open doors, check-in and out and make contactless payments.</p><p>Urban director Bart O’Callaghan welcomed Singapore-based Ascott as operator of the ensuite and studio apartments.</p><p>“Lyf will be Collingwood’s first co-living hotel and the first of its kind in Australia,” O’Callaghan said.</p><p>Ascott’s other serviced residences and hotel brands include Ascott The Residence, Somerset, Quest, Citadines and Citadines Connect.</p></div></div></div></div></div>

Victorian developers are forging ahead with new hotel plans as operators and project timelines are updated on two sites...

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><strong>Mining giant Rio Tinto will leave its current Brisbane headquarters after just one lease term, moving 1,000 of its employees across town to the new $500 million Midtown Centre.</strong></p><p>Rio will move its offices from the Dexus-owned 123 Albert Street to the Midtown Centre, taking up nearly half of the building’s 44,000sq m net lettable area. </p><p>The 27-storey, Fender Katsalidis-designed tower is being developed in partnership by Ashe Morgan David Mann’s DMann Corporation and offers large campus-style 2,500sq m floor plates.</p><p>Rio has signed a 10-year lease deal, worth about $17 million in annual rent for the developers. </p><p>The project, which was <a href="https://theurbandeveloper.com/articles/transformation-of-brisbane-midtown-precinct-approved---">approved in March 2018</a>, comprises the redevelopment of the former Health and Forestry Buildings into a 27-storey tower, a public laneway connecting Charlotte and Mary Streets and 3,000sq m of outdoor space. </p><p>The developers acquired the cross-block hub in late 2017 for $66 million. </p><p>Related: <a href="https://theurbandeveloper.com/articles/suncorp-strikes-massive-leasing-deal-as-mirvac-moves-to-sell-418m-stake-">Suncorp Strikes Massive Leasing Deal</a></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/8ac7bc71-3117-4d99-a91f-999131b1e9f3.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">Rio Tinto has signed a 10-year lease agreement for 19,564 square metres of office space.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The deal was pieced together by Sydney-based firm Property Beyond for Rio Tinto, while Knight Frank agents Campbell Tait and Mark McCann acted for the developer. </p><p>Industry sources said the mining giant had been on the lookout for new digs since late last year. Rio Tinto moved into its purpose-built 123 Albert Street offices in 2009.</p><p>Ashe Morgan chairman Michael Moss said the investment firm and its Brisbane-based delivery partner would deliver “a customised office solution” for Rio Tinto.</p><p>“Which we believe will create a benchmark for workplaces of the future,” Moss said. </p><p>Rio Tinto’s new offices will occupy 19,564sq m and take advantage of an 800sq m sky terrace, wellness centre and outdoor terrace, inter-floor atriums and “club-style” end of trip facilities.</p><p>Construction partner Hutchinson Builders is already on site, with a mid-2021 construction completion date. </p><p>The mining giant will take up the lease in August 2021. </p></div></div></div></div></div>

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<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Australia’s largest elevated park will be part of a development of one of the last significant land parcels in the Waterfront City precinct at Docklands. </p><p>The 8000sq m public park will be created on the rooftop of an existing car park for public use as part of a 3ha development at 3-43 Waterfront Way.</p><p><a href="https://www.theurbandeveloper.com/articles/ashe-morgans-67m-docklands-fresh-food-precinct-starts-construction-">Ashe Morgan’s plans for the Waterfront City East precinct</a> won approval from the City of Melbourne Council after a substantial reworking of a previous proposal, which was rejected in 2020. </p><p>“At almost 1ha, this will be the largest elevated park in Australia,” Deputy Mayor Nicholas Reece said.</p><p>“We know that green space is important to people in the Docklands … this is fantastic news for the people of Docklands. </p><p>“I think this will be a good development for Docklands that will stand the test of time.”</p><p>Ashe Morgan’s conceptual plan for the 3ha site comprises seven buildings, including two commercial towers up to 90m high, mixed-use buildings, a residential tower and a 1250sq m parcel of land that will be handed over for a civic building.</p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><div><picture><img src="https://tud-prod-tudmedia-oj9w2zshuo0o.s3.amazonaws.com/raw/images/39f6ab63-9d0b-49af-a95f-8c8841332280.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Ashe Morgan&#x27;s mixed-use development of the 3ha site centres around an 8000sq m rooftop public park on the site.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“The unvarnished truth is that some very poor planning mistakes were made in the early days of the Docklands and they must never be made again,” Reece said. </p><p>“Good planning decisions will help <a href="https://www.theurbandeveloper.com/articles/samma-brightlight-194-lormier-street-docklands">Docklands in the future</a>. It’s a very large parcel of land in a prominent place.” </p><p>Reece said Ashe Morgan had worked with the council to make significant improvements to the site including the removal of a raised deck on the ground plane and increased shopfront activation from 50 per cent to 80 per cent. </p><p>Councillor Rohan Leppert said having public green space on top of a car park was “not brilliant” and would never be recommended by the council, but “we’re doing our best to get these outcomes” within the constraints of the proposal. </p><p>“I do hope that the minister does approve the changes to the Waterfront City plans, and that we can ensure that the open space on site is not only open space for some residents, it is open space for everyone,” he said.</p><p>“The Docklands is at its best when people can seamlessly integrate throughout the entire area and aren’t just locked out of precincts that are only inward looking.”</p><p>The developer went back to the drawing board to make “significant changes to the scale, intensity and layout” of earlier proposed plans for 3-43 Waterfront Way, opposed by the City of Melbourne in 2020.</p><p>The Fender Katsalidis-designed <a href="https://www.theurbandeveloper.com/articles/melbourne-major-development-projects">Seafarers hotel and residences development at Docklands is progressing with Icon Constructions announced as the builder</a> of the $500-million project. </p><p>The development of the Northbank wharf site, controlled by private developer Riverlee, forms a crucial link between the Docklands regeneration on one side of Wurundjeri Way and on the other, the last wedge of commercial space along the Yarra River. </p></div></div></div></div></div>

Australia’s largest elevated park will be part of a development of one of the last significant land parcels in Docklands...

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