November 2, 2020- Dexus today announced that it has conditionally exchanged contracts to sell 60 Miller Street, North Sydney.
The sale will realise net proceeds of A$273 million, representing about a 3% premium to the property’s book value at June 30, 2020.
60 Miller Street is a 17-level, A-grade office tower with ground floor retail across 19,350 square metres, located in the centre of North Sydney’s financial district and was built in 1987. As at the end of June 2020, the property was 97% occupied and had a weighted average lease expiry of 3.5 years. Key customers include Covermore and Flight Centre.
The sale was the result of an off-market sales process which was enacted following the receipt of unsolicited offers. Settlement is subject to FIRB approval and is expected in mid-2021.
Dexus Chief Investment Officer, Ross Du Vernet said: “This transaction reinforces private market demand for quality office assets in Australia’s gateway cities. The sale improves portfolio composition and enables us to organically fund growth in our development and funds management businesses, while preserving capacity for further capital management initiatives.”
The net sale proceeds will initially be used to repay debt.