Stockland sells Melbourne Riverside Plaza office tower to Dexus for $201.5 million
Stockland has sold its Melbourne office tower Riverside Plaza to Dexus Wholesale Property Fund for $201.5 million.
The sale of the Flinders Street building is part of a program of divestments to fund the share buy-back and maintain low levels of debt.
Allowances for outstanding incentives totalling $7.9 million will be paid to the purchaser.
The $193.6 million net proceeds represent a premium of $11.6 million or 6.4% to the June 2011 book value of $182 million.
The 19-storey A-grade building has been popular with tenants since Grocon built it in the early 1990s for the State Electricity Commission, due largely to its extra-large floor plates and unobstructed view of the Yarra and Port Phillip Bay.
Stockland Trust Group bought the property after it took over APF in 2000.
In the last four years 60% of Riverside Plaza’s floors have been refurbished.
Upgrades to the main foyer, entrance and ground floor retail tenancies were completed this year.
The major tenants in the building include Sinclair Knight Merz and Primus Telecommunications.
“This is an outstanding result, which reflects the quality of this building and the hard work that has gone into increasing the value of the asset in recent years,” Stockland commercial property chief John Schroder says.
