80 Collins Street
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Leading real estate group Dexus has purchased a Melbourne CBD precinct for $1.476 billion today.

The 105,000 square metre 80 Collins Street precinct features a 47-level office tower. Construction is underway on site for additional 35-level office tower, a retail podium with 21 tenancies and a 255-room hotel.

The extensions are set to be completed in 2021. The record deal for the company follows last year’s purchases of 52 and 60 Collins street nearby. Today’s purchase boosts Dexus’ Melbourne CBD office market portfolio from nine per cent to 17 per cent. The site was sold to Dexus by QIC Global Real Estate.

Ownership of the precinct deal was split to give 75 per cent ownership to Dexus Funds Management and 25 per cent to Dexus Wholesale Property Fund. Dexus Wholesale’s share of the property will be wholly debt-funded.

Meanwhile, Dexus Funds Management will fund their majority share, worth $1.107 billion, through equity raising. The first two rounds of raising are planned at a fully underwritten $900 million placement to investors at $12.10 per share.

A purchase plan for shareholders will also be introduced, to raise up to $50 million.

Dexus CEO Darren Steinberg says opportunities in the Melbourne CBD office market is near an all-time low, caused by fast population growth.

“[The purchased enhances] our scale and presence in the tightly held ‘Paris end’ of the Melbourne CBD, a prime location where our customers want to be,” he said.

Steinberg also told The Australian Financial Review today “With the completion of this deal and the opposite corner at 60 Collins Street, we’ll have the ability to build a flagship office”.

Dexus’ place in the ASX remained unchanged today with a $12.71 billion market cap and shares trading for $12.50 each.

Please see the ASX announcement for further details

DXS by the numbers
More From The Market Online
Rows of data centre processors.

Even ‘biggest IPO of the year’ fell prey to ASX investors’ seemingly unshakeable debutant indifference

Even DigiCo (ASX:DGT) and its $2.74B float – dubbed the "biggest IPO of the year" –…
Voluntary administration concept

After nearly a year suspended, Land & Homes Group enters administration

Land & Homes looks like it won't be exiting its voluntary suspension anytime soon with the…
The Market Online Video

Sellers seeking the best outcomes amongst property market madness

From negotiating with agents to strategically positioning properties, we present a fresh perspective on maximising success…
Image of REA Group's Owen Wilson

REA drops pursuit of UK’s Rightmove amid ‘lack of meaningful engagement’

REA Group (ASX:REA) is giving up its pursuit of UK's Rightmove after its fourth cash and…