Dexus sells Sydney office site at 17% discount for $264 million, ET RealEstate

June 24, 2023

BENGALURU: Australian real estate firm Dexus said on Friday it is selling one of its premium office buildings in Sydney‘s central business district for A$393.1 million ($263.7 million) at a near 17% discount to an independent valuation made in December.

Commercial real property developers globally are facing a challenge as markets revalue the prices of assets in a slowing economy while offices extend the pandemic-driven remote working policy.

Dexus’ two Sydney central business district sites have been on the block for some time, a sale of which could be the gauge for the valuation crunch in the sector.

The sale of the property is subject to Australia‘s Foreign Investment Review Board. A Dexus spokesperson confirmed the buyer was a foreign entity, but did not disclose its name or nationality.

The spokesperson declined to comment on the progress of the sale of the other site.

At the Macquarie Australia Conference in early May, Dexus’ chief investment officer, Ross Du Vernet, had said market pricing implying a 20% to 25% downgrade in asset values was excessive.

The independent valuation carried out in December had resulted in a “circa 1.4% decrease on prior book values for the period to 31 December 2022”.

  • Published On Jun 9, 2023 at 07:00 PM IST

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