Dexus sells Grosvenor Place half share for $925 million to Chinese sovereign wealth fund

Dexus has sold a half stake in Grosvenor Place to Chinese Investment Corporation for $925 million.

The ASX listed company secured the biggest single commercial deal of the year to date in the much anticipated deal.

Dexus, in partnership with the Canada Pension Plan Investment Board, hopes to pandemic-proof its portfolio.

Dexus held 37.5 per cent, with the Canadian group at 12.5 per cent.The stake was sold at a discount of around 5 per cent to its book value, reflecting the impact of the coronavirus crisis.

The sale to the sovereign wealth fund through by CBRE and JLL awaits approval by the Foreign Investment Review Board.

The deal was flagged by The Australian in September when CIC edged out rivals in the contest for the interest in the tower, in a sign that international players would back the recovery of Australia’s office markets.

The sovereign fund's initial interest in the George Street office tower was bought from the Investa office portfolio in 2015.

The tower will be three-quarters owned by CIC.