Dexus offloads Sydney office park for A$231m

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Australian REIT Dexus has agreed to sell an office park in Sydney for A$231.2m (US$165m), as it recycles assets to fund its development and deal pipeline.

Dexus, which manages a A$28.9bn portfolio, sold the 11 Talavera Road property in Macquarie Park, about 10km north of Sydney’s CBD, according to the company.

The asset comprises three grade-A buildings and about 35,700 sq.m. of lettable area near the M2 motorway.

“We have added significant value over the past 3.5 years at 11 Talavera Road, leasing 26,726 square metres to take occupancy to 95%,” said Dexus CIO Ross Du Vernet.

“We have also progressed a development application for a new 26,000 sq.m. tower2, however Macquarie Park is a non-core market for Dexus and this divestment provides capacity to fund development and acquisition opportunities in core markets, in line with our stated strategy.”

Built in 2000, the property has a 5-star NABERS energy rating and a 4-star NABERS water rating. The buyer was not identified.

Sydney was among the top five most active commercial property markets across Asia Pacific last year.

The city’s transaction volumes were up 11% year-on-year to US$12.9bn in 2018, according to Real Capital Analytics.