DGAP-Adhoc Dexus Finance Pty Limited: Dexus establishes new JV to acquire interest in 1 Bligh Street Sydney
DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Real Estate
Dexus (ASX: DXS)
22 March 2021
Dexus establishes new JV to acquire interest in 1 Bligh Street, Sydney
Dexus today announced the establishment of the Mercatus Dexus Australia Partnership ("MDAP") joint venture with Mercatus Co-operative Limited ("Mercatus"). MDAP has exchanged contracts to acquire a 33.33% interest in 1 Bligh Street, Sydney, for $375 million.
Mercatus will hold an indirect 90% share in MDAP, with Dexus holding the remaining 10%. MDAP is structured to enable additional office acquisitions in the future. Dexus is the investment manager of the JV and post-acquisition will continue to manage 1 Bligh Street.
The establishment of MDAP and acquisition of a further interest in 1 Bligh Street (increasing Dexus's effective ownership interest to 36.66%) is consistent with Dexus's strategic initiative of expanding and diversifying the funds management business while progressing the objective of being the wholesale partner of choice.
Dexus CEO, Darren Steinberg said: "This transaction demonstrates the ongoing strength of demand from international institutions for high quality Australian office asset exposure under Dexus platform management."
Dexus EGM, Funds Management, Deborah Coakley added: "We are pleased to have been able to work with Mercatus in securing their first direct real estate investment in Australia, while using our internal capabilities to close this transaction."
1 Bligh Street is an iconic premium-grade, 29 storey building located in Sydney's Central Business District. It is well located in the financial core with good access to transport and other key amenities. The property is 99.5% occupied with a weighted average lease expiry of 5.4 years as at 31 December 2020. Major customers include Clayton Utz, Bloomberg Australia Pty Ltd and the Commonwealth of Australia.