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....

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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>Property giant Dexus has snapped up the Reserve Bank&#x27;s Melbourne headquarters in a $160 million deal.</strong></p></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>In a slightly smaller second deal Dexus also acquired the property next door, at 52 Collins St, for $70 million.</p><p>Dexus flagged plans to amalgamate the two sites and develop a total 35,000sq m in the medium term. </p><p>&quot;These acquisitions provide us with a presence in the tightly-held &#x27;Paris end&#x27; of Collins Street in the Melbourne CBD,&quot; Dexus chief executive Darren Steinberg said.</p><p>&quot;They also present us with a unique opportunity to undertake an office development creating long term value for investors in the next supply cycle.&quot;</p><p>Related: <a href="https://theurbandeveloper.com/articles/qic-acquisitions-brisbane-melbourne">QIC Lists Up to $2 Billion of Assets</a></p><p>Dexus office and industrial executive general manager Kevin George said Dexus expected office demand in Melbourne to remain strong.</p><p>&quot;[With] the vacancy rate to fall below 4 per cent next year and remain well below long term averages for the foreseeable future.&quot;</p><p>Surging demand for office space in Melbourne has <a href="https://theurbandeveloper.com/articles/melbournes-office-market-posts-strong-second-quarter-results">pushed the vacancy rate</a> to shrink below 4 per cent.</p><p>Settlement for 60 Collins St is expected by the end of October, while 52 Collins St is expected to settle in July 2019.</p></div></div></div></div></div>

Property giant Dexus has yesterday announced plans to purchase 60 Collins St, Melbourne for $160 million from the Reserve Bank.

Dexus has snapped up Perth’s Jandakot airport

<div class="row" data-reactroot=""><div class="cell cs12 cx12"><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p>Property giant Dexus has snapped up Perth’s Jandakot airport and surrounding parcels for $1.3 billion as industrial market conditions continue to strengthen.</p><p>The deal, struck with Perth-based property syndication and funds management company Ascot Capital and Kirsh Group headed up by southern African billionaire Nathan Kirsh, marks the company’s first investment in operational infrastructure.</p><p>Jandakot Airport, a major general aviation airport 20km south of the Perth CBD and 25km south-west of Perth airport, spans 620ha and is close to Fremantle Port and major road networks.</p><p>The airport is one of the busiest in Australia in terms of aircraft movements.</p><p>An initial $875 million will be outlaid for an existing 49 asset industrial portfolio spanning 360,000sq m, at an initial yield of 5.2 per cent and 4.7 per cent cap rate. </p><p>A further $225 million will be used to acquire 80ha of developable land surrounding the airport which it plans to transform into a major logistics hub while a final sum of $200 million for the airport’s 76-year ground lease, landing fees and infrastructure services.</p><p>Dexus will split the assets with its recently acquired logistics fund, Industria REIT, led by Alex Abell.</p><p>Dexus struck an agreement in May to take over ASX-listed APN Property Industria REIT in a $320-million cash deal.</p><p>The deal, which settled in August, was a strategic move by Dexus to access “new growth opportunities” in the industrial sector through APN Property’s established network of investors and investments.</p><p>The pair will split the purchase in a structure that will initially be held two-thirds by Dexus and a third by Industria. </p><p>The structure includes senior asset-level debt of $400 million which will remain in place at acquisition, reflecting a combined equity commitment of $900 million.</p><p>Dexus will initially acquire Jandakot City Holdings and 49 per cent of Jandakot Airport Holdings before bringing in additional third-party capital partners into the structure prior to settlement of the remaining 51 per cent.</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/c49d2a19-1dbc-4a61-9ec3-e03bb95555f9.jpg" width="1600"/></picture><div><span style="align-content:center;opacity:0.8">▲ The airport currently has 380,000sq m in industrial and logistics space across built space over 100 hectares.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Dexus chief executive Darren Steinberg, a former Perth local, said the introduction of third-party capital had made the transaction a compelling opportunity.</p><p>“The near term development potential and scope to enhance returns means this [transaction] is aligned with our priorities to grow our funds management business and recycle capital into high returning opportunities,” Steinberg said.</p><p>“This transaction also provides the opportunity to achieve a step change for ADI as it secures an interest in quality logistics-oriented real estate with embedded development potential.” </p><p>Dexus is also undertaking a major fund-through at 884-928 Mamre Road in Sydney’s Kemps Creek with Industria, for $125.4 million.</p><p>The facility is in close proximity to the development land recently acquired by Dexus at<a href="https://www.theurbandeveloper.com/articles/dexus-plots-logistics-hub-mamre-road-precinct"> 113-153 Aldington Road</a> where it has secured a pre-commitment with McPhee Distribution services for a 72,000sq m logistics facility.</p><p>It is also placing another development leased to Australia Post in the Melbourne suburb of Truganina, costing $69 million, into Industria.</p><p>Further ahead, Dexus has $14.6 billion of development projects—office, industrial and healthcare—in its pipeline, including the new <a href="https://www.theurbandeveloper.com/articles/dexus-confirms-14bn-atlassian-tower-backing">headquarters for Atlassian</a> in Sydney and the <a href="https://www.theurbandeveloper.com/articles/dexus-waterfront-brisbane">Waterfront Brisbane</a> complex.</p><p>Activity in the group’s <a href="https://www.theurbandeveloper.com/articles/dexus-results-asx-2021">industrial portfolio has remained strong</a>, leasing 450,000sq m of industrial space across 116 transactions in the past financial year.</p><p>The group also completed almost $900 million in developments, including $450 million of industrial projects, taking its industrial portfolio to over 2.6 million square metres.</p><p>Dexus after picking up and merging with the $5.5-billion AMP Capital Diversified Property Fund in April now boasts $25 billion in funds under management.</p></div></div></div></div></div>

Property giant Dexus has snapped up Perth’s Jandakot airport and surrounding parcels for $1.3 billion as industrial market conditions continue to stre

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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>The thriving Sydney North Shore office market will soon welcome 100 Mount Street, which has topped out after two years of construction. </strong></p><p>Developed by Australia’s largest landlord, Dexus, the $600 million tower will deliver 42,100sq m of space and will be North Sydney’s tallest commercial tower, topping out at 35-storeys. </p><p>Marketed by Dexus as “the defining landmark of North Sydney”, the tower is 63 per cent leased ahead of its early-2019 completion.</p><p>The tower will not stand as North Sydney’s tallest commercial building for long, with Winten Property Group’s $1 billion 1 Denison Street soon to overtake it, at 39-storeys and 60,000sq m of office space.</p><p><a href="https://theurbandeveloper.com/articles/-winten-appoints-new-builder-for-1bn-1-denison-street-tower">Winten appointed Multiplex to deliver the tower earlier this year</a> after terminating a $200 million construction contract with Grocon.</p><p>Anchor tenant at 100 Mount Street, Laing O’Rourke – who is also building the tower – pre-committed to the tower prior to commencing construction in 2016. <a href="https://theurbandeveloper.com/articles/nbn-co-100-mount-north-sydney-dexus">Government-owned Nbn Co committed to 48 per cent of the building </a>a year ago, consolidating multiple Sydney offices to lease 20,364 square metres.</p><p>Related: <a href="https://theurbandeveloper.com/articles/dexus-property-portfolio-confirms-guidance">Dexus Affirms Guidance After Strong Leasing Results</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/8dc0ed3f-4779-4404-9d32-3fd98745b58b.jpg" width="992"/></picture><div><span style="align-content:center;opacity:0.8">Dexus&#x27; 100 Mount Street will bring 4000 workers to Sydney&#x27;s North Shore.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>The project is 100 per cent owned by Dexus and its unlisted Dexus Wholesale Property Fund.</p><p>Dexus chief investment officer Ross Du Vernet celebrated the topping out milestone with Laing O’Rourke Australia managing director Cathal O’Rourke, member for North Sydney Trent Zimmermann MP, member for the North Shore Felicity Wilson MP and North Sydney Mayor Jilly Gibson.</p><p>“We are excited to be leading North Sydney’s revitalisation through the creation of our premium office development which will bring around 4,000 workers to the North Sydney CBD,” Du Vernet said. </p><p>The development is within walking distance to the new Victoria Cross Metro Station, and is targeting 5 Star Green Star and 5 star NABERS energy ratings. </p><p>The tower is designed by Architectus in collaboration with Chicago-based firm SOM. </p></div></div></div></div></div>

The thriving Sydney North Shore office market will soon welcome 100 Mount Street, which has topped out after two years of construction. 

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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>Charter Hall is accelerating the construction of 555 Collins Street to meet a “key spike” in the expiry of commercial leases in Melbourne’s CBD. </p><p>The developer says it expects the demand for about 700,000sq m of leased space to peak in 2022 and is taking the “proactive approach” by commencing demolition early.</p><p>“It puts us in a position to deliver within this window of expiries,” Charter Hall development director Simon Stockfeld said. </p><p>The $13 million demolition contract has been awarded to contractor Delta Group. </p><p>The property fund manager tapped US firm Gensler to design the 35-storey office tower at 555 Collins, submitting a development <a href="https://theurbandeveloper.com/articles/charter-hall-lodges-plans-for-15bn-collins-development">application</a> for the site in mid-April. </p><p>The first phase of the project will deliver 45,000sq m of technology-enabled office space to Melbourne’s financial district. </p><p>Related: <a href="https://theurbandeveloper.com/articles/dexus-seizes-whole-block-in-melbournes-biggest-ever-property-deal">Dexus Seizes Whole Block in $1.48bn 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/da876c5d-2e9b-43f3-afef-b59fcf34b5c2.png" width="1366"/></picture><div><span style="align-content:left;opacity:0.8">The towers Charter Hall plans to develop, totalling 80,000sq m, will be tech-heavy, integrating “smart” technology with research on connected workplaces.</span><span style="float:right;opacity:0.8">Gensler, Cox.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Charter Hall <a href="https://theurbandeveloper.com/articles/charter-hall-acquires-140m-melbourne-cbd-site">acquired</a> 555 Collins Street for $140 million in October from Fragrance Group, creating a 4,620sq m strategic land holding in the western core of Melbourne’s CBD.</p><p>Charter Hall’s prime office fund owns neighbouring 55 King Street. </p><p>“The existing 555 Collins Street building is vacant, allowing us to hit the accelerator to meet completion deadlines,” Stockfeld said.</p><p>The Cox Architecture and Gensler-led design will “activate” the ground plane by adding public connections between Collins Street, King Street and Flinders Lane and a retail hub. </p><p>The demolition contractor Delta is already onsite, setting up perimeter gantries and erecting a tower crane. Completion is slated for mid-2022.</p><p>The 35-storey building is targeting 6 Star Green Star, 5 Star Nabers Energy and Platinum Well certification.</p><p>Charter Hall has appointed JLL and Colliers as leasing agents. </p></div></div></div></div></div>

Charter Hall is accelerating the construction of 555 Collins Street to meet a “key spike” in the expiry of commercial leases in Melbourne’s CBD. 

Dexus has confirmed it is selling five office properties in Sydney and Brisbane in a deal worth around $1.5 billion.

<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 has confirmed it is selling five office properties in Sydney and Brisbane in a deal worth more than $1.3 billion.</p><p>The company is running a number of on-market sales campaigns, with strong interest from local and offshore groups. Sources confirmed the ASX-listed giant was in due diligence with a number of buyers.</p><p></p><p>The Sydney properties include 383 Kent Street and 309 Kent Street in the CBD as well as 100 Harris Street in Pyrmont and 130 George Street in Parramatta which are all close to closing, above book value.</p><p></p><p>Meanwhile in Brisbane it was understood a buyer had been found for the Blue Tower 12 Creek Street within the golden triangle.</p><p></p><p>It follows a series of<a href="https://www.theurbandeveloper.com/articles/office-take-up-picks-up-in-sector-recovery"> transactions in the financial district</a> including 444 Queen Street for $54.4 million and 299 Adelaide Street for $85 million.</p><p></p><p>Dexus has also been on a <a href="https://www.theurbandeveloper.com/articles/dexus-industria-reit-jandakot-airport-acquistion">spending spree</a> in recent weeks on industrial assets including Perth’s Jandakot airport and surrounding parcels for $1.3 billion.</p><p></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/7529162a-361b-4e78-8a8a-c646138782d1.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ 309 Kent Street and 100-130 Harris Street in Sydney are among the office assets for sale.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In the past year the group’s industrial sector returns had outperformed other sectors, returning 26 per cent in unlisted funds compared to 10.6 per cent for office ad 5.6 per cent for retail.</p><p>“Despite uncertainty associated with the pandemic, investment demand for office assets kept office valuations relatively firm,” Dexus&#x27; noted in its fourth quarter real estate review.</p><p></p><p>“Short-term growth prospects in the industrial and healthcare sectors are better than for office and retail, where vacancy will take time to absorb.”</p><p></p><p>Moody’s Investor Service senior analyst Saranga Ranasinghe said A-REITs including Dexus were increasing their portfolio weighting to industrial because of structural changes in demand, but yields remained low.</p><p></p><p>“Most are increasing investments in industrial properties and completing developments in the office sector,” Ranasinghe said.</p><p></p><p>“But a combination of debt growth to fund industrial segment acquisitions, low yields of these acquired assets, and lower income in retail and office because of pandemic disruptions will drive weaker credit metrics.”</p><p>According to Moody’s workplace flexibility would weigh in on demand and above average incentives would keep rents low in the next 12 months.</p></div></div></div></div></div>

Dexus has confirmed it is selling five office properties in Sydney and Brisbane in a deal worth around $1.3 billion to focus on health and industrial

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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>Sydney-based fund manager and developer Dexus reconfirmed its market guidance for the 12 months to June 2019, thanks to strong leasing in Sydney during the first quarter and profits from divesting</strong> <strong>a Melbourne commercial asset with development approval.</strong></p><p>Dexus chief executive Darren Steinberg said the group was on track to achieve its guidance of “circa five per cent growth in distribution per security” for the 2019 financial year.</p><p>Related: <a href="https://theurbandeveloper.com/articles/dexus-sells-melbourne-carpark-to-gpt-for-87m">Dexus Sells Melbourne Carpark to GPT for $87m</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/96628ef2-3b21-4c5d-8097-8d6f43b3565a.jpg" width="900"/></picture><div><span style="align-content:center;opacity:0.8">During the period Dexus settled on the sale of 32 Flinders street for $87.1m, the sale contributed about $49 million pre-tax to the group’s trading profits for full-year 2019.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“Looking closely at Dexus’s $13.3 billion property portfolio, our latest results for the September quarter show that the positive market fundamentals are continuing to flow,” Steinberg said.</p><p>The Sydney-based fund manager and developer said key milestones across its $4.2 billion development pipeline, include the commencement of development works in Perth’s 240 St Georges Terrace.</p><p>The group also replenished its industrial development pipeline with agreements to purchase three development sites in Melbourne, Sydney and Brisbane with a combined end value of around $700 million.</p><p>Related: <a href="https://theurbandeveloper.com/articles/dexus-plans-200m-lifestyle-hub-in-south-sydney">Dexus Plans $200m ‘Lifestyle’ Hub in South Sydney</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/d014ece1-21a4-4d13-9b6d-000eca220748.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">Dexus snapped up 60 Collins street for $160 million, and next door neighbour 52 Collins for $70 million.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Dexus splashed $230 million on a prime office development site, <a href="https://theurbandeveloper.com/articles/dexus-to-aquire-two-neighbouring-melbourne-sites">two neighbouring assets at 60 and 52 Collins Street</a> in Melbourne, last month. </p><p>Along with the addition of 140 George Street in Parramatta, which Dexus says increases the pipeline of potential concept opportunities to the $2.9 billion mark.</p><p>Related: <a href="https://theurbandeveloper.com/articles/dexus-frasers-progress-plans-for-sydneys-silicon-valley-at-central-station">Dexus, Frasers Progress Plans for Sydney&#x27;s &#x27;Silicon Valley&#x27; at Central Station</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/840d8337-6dbc-49d8-89e5-78913ede4c01.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">140 George St, Parramatta</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Dexus executive general manager, office and industrial, Kevin George said leasing across the group’s core office markets remained solid with a significant proportion of the leasing during the quarter undertaken in Sydney.  </p><p>Over the quarter ending September, 41,673sq m of office space was leased across 46 transactions. </p><p>Notable activity during the period included securing a substantial portion of 2 and 4 Dawn Fraser Avenue Sydney Olympic Park, with 60 per cent of the total space across both buildings now committed.</p></div></div></div></div></div>

  Australia’s largest listed landlord, with a $4.2 billion development pipeline, reconfirmed its market guidance for the 12 months to June 2019.

Dexus is bumping up the height of its next $1 billion Collins Street office tower at 52-60 Collins Street, Melbourne.

<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 bumping up the height of its $1-billion Collins Street office tower by 55 metres after buying development rights to the prestigious Melbourne Club for the “best business address in the country”.</p><p></p><p>The proposal was approved unanimously by the Future Melbourne Committee for 52-60 Collins Street, with the addition of club buildings at 36 Collins Street and 57-67 Little Collins Street. </p><p></p><p>Councillors cited the significant <a href="https://www.theurbandeveloper.com/articles/melbourne-to-reject-dexus-collins-street-office-tower">improvements on the 2020 plans</a>, which were recommended for rejection by officers but ultimately approved by the City of Melbourne with heavy conditions.</p><p></p><p>The new design added more than 20,000sq m to the gross floor area to 58,127sq m as well as a through link to McGraths Lane and is expected to cost close to $300 million.</p><p></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/abd99043-182c-47f3-8085-a8b23cbce612.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The overall building height will increase from 101.5m to 159.64m for the new Dexus office, planned for 52-60 Collins Street, Melbourne.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Deputy lord mayor Nicholas Reece said the site was on the most prestigious business street in Australia and they wanted to continue to see high-quality masonry stone finishes as proposed for this project used in the future.</p><p></p><p>“In terms of Australian corporate real estate, this is probably the best business address in the country and so it’s only right that we as councillors look for a building that achieves the absolute highest standards,” Reece said.</p><p></p><p>“There is a lot of very clever thinking that has gone into this application ... and, dare I say, commercial ingenuity as well.</p><p></p><p>“As councillors we can only guess at the sum that has been paid to the Melbourne Club for the purchase of those air rights. </p><p></p><p>“What it has meant in the terms of floor area ratios and other requirements of our planning scheme—this development does have considerable more room to move and now does comfortably comply, certainly in terms of height and bulk.”</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/12f976c5-3481-4f78-bdeb-4944704ba96c.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ The Dexus office tower alongside Melville House and the Melbourne Club as designed by Bates Smart.The corner site is the former Reserve Bank of Australia.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Bates Smart director Julian Anderson said they used inspiration from Melville House and the Melbourne Club in designing the podium of the building and creating ground floor activation.</p><p></p><p>“The proposal seeks to reinforce the existing and historic character of Collins Street, which we know is one of sophistication, enduring elegance, grandeur and permanence,” Anderson said.</p><p></p><p>“At that lower level the podium does provide a very fine-grained low-level streetscape which responds to the character, texture and materiality of the adjacent nearby heritage building.”</p><p></p><p>Dexus Funds Management co-own the site with Black Swan Properties and Cycnus.</p><p>Dexus also owns the <a href="https://www.theurbandeveloper.com/articles/dexus-80-collins-street-completes">recently completed 80 Collins Street</a> tower, 360 Collins Street and 525 Collins Street.</p><p>There is a<a href="https://www.theurbandeveloper.com/articles/melbourne-cbd-office-oversupply-crisis-looming"> large pipeline of office developments in Melbourne </a>despite occupancy being heavily affected by locations and restrictions. </p><p></p><p>Landlords will be looking to the New Year results and 90 per cent vaccination rate target expected to be reached by November 24 when on-site work can return for anyone fully vaccinated.</p></div></div></div></div></div>

Dexus is bumping up the height of its next $1 billion Collins Street office tower at 52-60 Collins Street, Melbourne 

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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>Singapore-based GIC has sold its 49 per cent stake in the multi-billion-dollar Dexus Australian Logistics Trust in a show-stopping deal for Australia’s commercial property end-of-year finale.</p><p>It has been acquired for an undisclosed sum by global investment powerhouse Blackstone in what it has described as its “largest investment in Asia”.</p><p>Blackstone’s Core+ Real Estate has signed a binding agreement to purchase GIC’s joint venture interest in the $3.5-billion trust, which is run by ASX-listed Dexus.</p><p>The big-ticket industrial play is part of the US-based private equity giant’s investment strategy that focuses on logistics, residential, office, life science office and retail assets in gateway cities.</p><p>It has been secured as the Covid-accelerated e-commerce boom and supply chain disruption continues to unfold.</p><p>“The transaction significantly increases our Asia Core+ Real Estate exposure to the logistics space and is consistent with our strategy of overweighting high conviction sectors and locations,” head of Core+ Real Estate Frank Cohen said in a statement.</p><p>The acquisition followed an “unsolicited proposal” by Blackstone and the trust’s existing management arrangements will remain unchanged.</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/2a04e1c2-a966-4f1d-830c-51364a4a1bf6.jpg" width="800"/></picture><div><span style="align-content:center;opacity:0.8">▲ Dexus $90m last-mile logistics facility in Glendenning, western Sydney. Image: Dexus Australian Logistics Trust. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Dexus chief executive Darren Steinberg said it had been pleased to have worked with GIC to grow the portfolio.</p><p>“This new relationship provides a stable long-term source of capital to invest alongside us,” he said. “We welcome Blackstone onto our platform and look forward to continuing to drive the partnership’s strong performance.”</p><p>The Dexus Australian Logistics Trust was established November 2018 with GIC acquiring an initial 25 per cent interest. It was seeded with 55 assets from the Dexus industrial portfolio comprising core logistics properties and a development landbank.</p><p>It has since grown through GIC’s acquisition of an additional 24 per cent interest, external acquisitions and the build out of the development pipeline that currently has exposure to 77 assets.</p><p>The portfolio is weighted to traditional logistics facilities, mostly in News South Wales and Victoria, which are leveraged to the growth of e-commerce.</p></div></div></div></div></div>

    Singapore-based GIC has sold its 49 per cent stake in the multi-billion-dollar Dexus Australian Logistics Trust in a show-stopping deal...

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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>We cannot resume publishing for the year without first acknowledging the unprecedented and deadly <a href="https://theconversation.com/with-costs-approaching-100-billion-the-fires-are-australias-costliest-natural-disaster-129433">bushfires</a> that have ravaged the country.</p><p>While it is still too early to <a href="https://theconversation.com/with-costs-approaching-100-billion-the-fires-are-australias-costliest-natural-disaster-129433">predict the economic impact</a> of the bushfires, early estimates on insurance losses are closing in on half a billion-dollars and likely to continue to rise, according to the Insurance Council. </p><p>The negative fiscal cost on agricultural production and food prices, business sentiment and the tourism industry will be significant, while the <a href="https://theurbandeveloper.com/articles/our-buildings-arent-made-to-keep-out-bushfire-smoke-heres-what-you-can-do">length and health impact</a> of the smoke appears to be unprecedented. </p><p>Moody’s Analytics economist Katrina Ell said that the risk of broader macroeconomic spillovers this season are high given the scale of the fires.</p><p>“Odds were already high that the Reserve Bank will cut interest rates at its next meeting, in February, to bring the cash rate to 0.5 per cent. </p><p>“The fires increase those odds.” </p><p>Reserve Bank governor Philip Lowe has come under increasing pressure not to cut interest rates further when the Reserve Bank meets in early February.  </p><p>Related: <a href="https://theurbandeveloper.com/articles/our-buildings-arent-made-to-keep-out-bushfire-smoke-heres-what-you-can-do">Our Buildings Aren’t Made to Keep Out Bushfire Smoke. Here’s What You Can Do</a></p><h2><strong>Quick refresh: Property, markets and the built environment</strong></h2></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/6177b829-946f-4316-ac42-1aa620a7c370.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">▲ Ongoing bush fires may be a near-term mitigating factor for the capital city markets, according to Savills&#x27; prime housing market report.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>We returned to our desks in 2019 to the fall-out from the sudden, pre-Christmas evacuation of the Opal Tower, an ominous start to a year for an industry facing considerable uncertainty in <a href="https://theurbandeveloper.com/articles/australias-house-prices-dropped-65-per-cent-in-2018--domain">residential prices</a> and the yet-to-be handed down final report from the <a href="https://theurbandeveloper.com/articles/banking-industry-culture-driven-by-profit-and-greed-banking-royal-commission">banking royal commission</a>.</p><p>And with news Opal residents have been <a href="https://theurbandeveloper.com/articles/residents-return-opal-tower-sydney">given the all-clear</a> to return before Christmas, the saga bookended a<a href="https://theurbandeveloper.com/category/Latest%20News"> huge year</a> in property. </p><p>Low interest rates and the loosening of banks’ lending policies bolstered property markets, with residential markets ending the <a href="https://theurbandeveloper.com/articles/fastest-growth-in-decade-for-house-prices">year on a high</a>, surging 4 per cent over the last quarter—the fastest growth in more than 10 years.</p><p>The commercial real estate market capital growth cycle looks to have peaked, with research indicating that yields should remain stable into the new year as low interest rates and positive—albeit sluggish—economic growth maintains demand for Australian commercial real estate.</p><p>Related: <a href="https://theurbandeveloper.com/articles/property-most-defining-year">Has This Been One of the Most Defining Years for Property Since the GFC?</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/a4c56744-7f97-4e1f-a9ed-8e3b989d8b87.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">▲If approved, Dexus plans to build two towers on Eagle St Pier. </span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>In development news, Dexus finally <a href="https://theurbandeveloper.com/articles/dexus-faces-new-hurdle-for-eagle-street-pier">struck a deal</a> with the Queensland government for its $2.1 billion redevelopment plans for Brisbane’s Eagle Street Pier. In Brisbane&#x27;s inner north, Geon Property is set to kick-off work on its $750 million <a href="https://theurbandeveloper.com/articles/developer-downsizes-750m-transit-oriented-development">Albion Exchange project,</a> after winning approval for the first stage.</p><p>Mirvac ended 2019 with the $200 million acquisition of Chinese developer’s Nuway Wy’s 7-23 Spencer Street site in Melbourne.</p><p>Elsewhere, Victoria has continued to refine its shortlist of <a href="https://www.afr.com/property/commercial/victoria-narrows-500m-treasury-square-shortlist-20200113-p53r1g">development bidders</a> for Melbourne’s Treasury Square urban regeneration project on the VicTrack site, with up to 130,000sq m of prized commercial space up for grabs. The tender is expected to be finalised by mid-2020. </p><p>In Sydney, Lendlease moved a 25 per cent interest in its $1.2 billion Victoria Cross over-station development tower in North Sydney to its Australian Prime Property Fund. The 40-storey office building is set to add 58,000sq m of commercial space to Sydney’s rapidly-transforming second CBD. </p><p>Meanwhile, the government’s <a href="https://theurbandeveloper.com/tags/CEFC">Clean Energy Finance Corporation</a> launched a new green home loan worth up to $60 million that will offer borrowers a 0.4 per cent discount on their home finance. </p><p>Related: <a href="https://theurbandeveloper.com/articles/what-to-expect-from-property-markets-in-2020--">What to Expect from Property Markets in 2020</a></p></div></div></div></div></div>

Just settling back into work in 2020? Here’s what you may have missed in the property industry over January...

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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>Strong employment growth and positive business confidence continue to support office investments across the major capital markets, with no sign of office occupier demand slowing according to a Dexus report.  </strong></p><p><strong></strong>The Australian Real Estate Quarterly Review, released this week, shows office investments are continuing to perform well in Australia’s relatively steady growth environment.</p><p>“The office vacancy rate for Melbourne CBD is four per cent, the lowest in 30 years, while the Sydney CBD (4.7 per cent) recorded its lowest in 18 years,” Dexus general manager Peter Studley said.</p><p>Related: <a href="https://theurbandeveloper.com/articles/dexus-property-portfolio-confirms-guidance">Dexus Affirms Guidance After Strong Leasing Across ‘Solid’ Office Markets</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/5f92dd03-0b7d-4100-b918-7a57a1439c5d.jpg" width="920"/></picture><div><span style="align-content:center;opacity:0.8">Melbourne’s CBD office vacancy rate of 4 per cent is the lowest in 30 years.</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>“Melbourne is benefiting from a boost in Victorian population growth.</p><p>“While a lack of availability of large continuous office space is limiting absorption in Sydney&#x27;s CBD, office enquiry levels are up substantially from last year,” Studley said.</p><p>This week property giant <a href="https://theurbandeveloper.com/articles/mirvac?utm_medium=email&amp;utm_campaign=241018%20QLD&amp;utm_content=241018%20QLD+CID_9b25dbff4e325d36c42a9d127ff4155a&amp;utm_source=email">Mirvac reported solid returns underpinned by the company’s strong yielding office portfolio</a>, in which Mirvac’s chief executive Susan Lloyd-Hurwitz described it as “the growth engine of the business over the next stage of the real estate cycle”.</p><p>Mirvac maintained 97.2 per cent occupancy across its office pipeline during the quarter while completing 11,000sq m of leasing activity.</p><p>The Dexus report shows Sydney recorded negative net absorption of -12,000sq m, largely due to the withdrawal of 66 King Street for refurbishment and smaller tenants leaving the market. </p><p>While Melbourne continued its solid run recording net absorption of +79,800sq m in the third quarter, “its strongest quarter in more than a decade”. </p><p><strong>Q3 2018 Office Snapshot</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/6cb7c7c8-137e-494b-b589-cd7fbf68ca5b.jpg" width="586"/></picture><div><span style="float:right;opacity:0.8">JLL Research/ Dexus Research</span></div></div></div></div></div><div class="row ci"><div class="cell cs12 cx12"><div class="ci cl"><p><br>Brisbane bounced back following a subdued second quarter to record net absorption of +15,400sq m in the third quarter, and a slightly reduced vacancy rate of 13.9 per cent. </p><p>While Perth&#x27;s vacancy rate increased to 22 per cent, Perth continued its steady improvement recording +17,600sq m of net absorption.</p></div></div></div></div></div>

  Melbourne records strongest quarter in more than a decade and Sydney CBD records lowest vacancy rate in 18 years, in strong office sector. 

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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>AMP Capital has shrugged off a shaky 2021 to cement its future in retail, doubling down on its “Pac and Mac” deal.</p><p>The 172-year-old company sold off its Global Equities and Fixed Income business to Macquarie Asset Management, while its <a href="https://www.theurbandeveloper.com/articles/dexus-amp-capital-merger-vote">AMP Capital Diversified Property Fund merged with Dexus in April despite attempts to fend off the takeover bid</a>. </p><p>Upping its $2.2-billion Pac and Mac deal, AMP Capital’s Shopping Centre Fund (ASCF) has splashed $422.5 million on an additional 25 per cent stake in Macquarie Centre in northern Sydney.</p><p>And together with UniSuper and Cbus Property it has spent a further $336.4 million to take the remaining 20 per cent stake in Pacific Fair on the Gold Coast through its AMP Capital Retail Trust (ACRT). </p><p>Both stakes were acquired from Dexus Wholesale Property Fund. When the acquisitions settle early next year, ASCF and ACRT will each hold 50 per cent of the Macquarie Centre, while ACRT will entirely own Pacific Fair, according to AMP Capital’s global head of real estate Kylie O’Connor.</p><p>“With these latest acquisitions in Pacific Fair and Macquarie Centre, AMP Capital’s investors will hold stakes in 14 of the most highly regarded shopping centres in Australia and New Zealand,” O’Connor said.</p><p> “The latest acquisitions cap off a record year of more than $3.6 billion in retail transactions, as well as the introduction of two new parties into ACRT in Cbus Property and UniSuper, which reflects the sector-leading expertise of AMP Capital’s highly regarded real estate team and the continuing strength of our platform.”</p><p>In October 2021, AMP Capital introduced two new partners in ACRT—Cbus Property, one of Australia’s leading property investors and developers, and UniSuper, one of Australia’s leading superannuation funds, via a <a href="https://www.theurbandeveloper.com/articles/what-went-right-for-australian-retail-comeback">$2.2-billion investment in Pacific Fair and Macquarie Centre</a>. </p><p>It was billed as the largest retail transaction in Australian history, as well as one of the largest global retail transactions since 2018.</p><p>AMP Capital Shopping Centre Fund has $3.5 billion in assets as at September 2021, with 14 assets across Australia and New Zealand but has recently divested assets, including the Warringah Mall. </p><p>The portfolio has a high weighting to regional and super regional shopping centres as AMP Capital looks to diversify into larger core assets with greater development potential and upside. </p><p>CBUS Property chief executive Adrian Pozzo said the increased investment in Pacific Fair demonstrated a commitment to the future of retail at the shopping centre.  </p><p>“The further investment into Pacific Fair with UniSuper and AMP Capital reinforces our conviction in the underlying performance of the centre, the potential for future growth and the alignment with our new partners,” Pozzo said. </p><p>UniSuper head of property and infrastructure Kent Robbins said the investment would increase UniSuper’s exposure to the reopening of economies, and growth opportunities at the “iconic centre”.</p></div></div></div></div></div>

AMP Capital has shrugged off a shaky 2021 to cement its future in retail, doubling down on its “Pac and Mac” deal...

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