real estate news

Australian Real Estate Firm Dexus to Sell Assets Worth $255 Million

By GeoSquare News Desk · Published 2024-06-27

Australian real estate firm Dexus has announced its decision to sell three assets, including its 25% stake in Sydney office building 5 Martin Place, for a combined value of $254.67 million. The sale is expected to generate proceeds of A$383.2 million, which the company plans to use to repay its debt.

The 25% stake in 5 Martin Place is valued at A$148.1 million and is part of a 50% holding jointly held with Canada Pension Plan Investment Board. The building is a premium grade office property with a weighted average lease expiry of 2.9 years and occupancy of 97%, as of May 31.

Last week, Dexus had flagged a decline in the book value of its portfolio for the six months to June-end, indicating an acceleration in the downturn in office real estate. The company's shares fell as much as 4.1% and were on track for their worst day since October 25, 2023.

information Dexus is an Australian real estate investment trust (REIT) that owns and manages a diverse portfolio of office, industrial, and retail properties across Australia. The company is listed on the Australian Securities Exchange (ASX) and has a market capitalization of over A$10 billion.

Canada Pension Plan Investment Board is a Canadian Crown corporation that invests in a diversified portfolio of assets, including real estate, stocks, bonds, and private equity. The organization manages a fund valued at over CAD 400 billion and has investments in over 30 countries around the world.