DEXUS acquires The Mill, Alexandria for $110 million

DEXUS Property Group (DEXUS) today announced that it has exchanged contracts to acquire The Mill, 41-43 Bourke Road, Alexandria, NSW for $110.2 million.

The Mill is a 1.9 hectare mixed use multi-tenanted property located on the corner of Bourke Road and Huntley Street in Alexandria, NSW.

Located 15 minutes from the Sydney CBD, one kilometer from Green Square railway station and 10 minutes from Sydney Airport the property comprises a mix of 10 modern and refurbished historic buildings.

In total it provides 17,579 sqm of warehouse style office, retail spaces and car parking.

The tenancy profile consists of a diverse range of users and covenants such as BlueScope Steel, Genesis HealthCare, Seafolly, Bendon, Under Armour, Mavi, carsales.com.au and The Grounds of Alexandria.

The Grounds of Alexandria is a popular food & beverage operator offering a cafe, bar, restaurant and sustainable garden.

In July the Grounds of Alexandria was listed for sale with hopes of $100 million.

It attracts 15,000-20,000 visitors each week and providing a popular amenity for the occupiers and local community.

The property is 83% occupied with a weighted average lease expiry of circa five years. Settlement is expected in January 2017.

Ross Du Vernet, the Dexus chief investment officer said The Mill was well positioned to benefit from a combination of our active management of under-utilised space.

"And we expect to achieve rental growth, driven by withdrawals of nearby existing traditional office and warehouse properties.”

The complex was put up for sale by Goldman Sachs.

It was the brainchild of developer Albert Bertini, then fell into the hands of lender Suncorp.