Dexus announces conditional contract to sell 45 Clarence Street to Peakstone

Dexus has announced that it has conditionally exchanged contracts to sell 45 Clarence Street, Sydney to Peakstone.

The sale will realise net proceeds of $530 million, which is consistent with the property’s book value at 31 December 2019.

It was bought in 1998 at $165 million.

45 Clarence Street is a 28-level, A-grade office tower across 32,000 square metres, located in the western corridor of Sydney’s financial district and was built in 1990.

On 31 December 2019, the property was 100% occupied and had a weighted average lease expiry of 3.3 years.

The sale was concluded following the receipt of an off-market unsolicited offer from Peakstone, a Singapore headquartered manager of Asian capital, and is subject to the purchaser receiving FIRB approval.

 “This transaction reinforces the resilience of prime quality office asset values in the Sydney CBD and enables us to recycle capital into higher returning opportunities that we expect will become more prevalent over the coming period,” said CEO Darren Steinberg.

The transaction follows the completion or exchange of more than $800 million of property divestments across the group during FY20.

The net sale proceeds will initially be used to repay debt.