AAIG, Dexus trade Woodside HQ stake

Emu Brewery (centre) occupied the site making way for Capital Square between 1938-1992.

Dexus is paying $339 million for a 49 per cent stake in Woodside Energy’s Perth headquarters.

The deal with Malaysia’s AAIG, which holds the asset, 98 Mounts Bay Road, in a holding unit trust – reflects a 5.1 per cent passing yield.

Upon completion, Capital Square will contain three towers.

The office is the first of three towers forming Capital Square – which is replacing the 1930s Emu Brewery.

Coincidentally, Woodside’s last headquarters – 240 St Georges Terrace – was also owned by Dexus.

Capital Square 1

Also known as Capital Square 1, 98 Mounts Bay Road contains 60,635 square metres over 32 storeys.

The office area is graded Premium.

The site, in Perth’s Western precinct, spreads 1.34 hectares.

Woodside signed a lease in 2016 and moved in two years later.

In 2019, AAIG redesigned the other buildings earmarked for the brewery site – forcing the resources giant to launch legal action arguing its aspect and privacy would be compromised (story continues below).


A portion of Dexus’ contribution to Capital Square 1 will be utilised by the trust as a loan – $77m of which is to be repaid by 2025.

As at June 30, 2021, the property was independently valued at $970m.

The asset has a Weighted Average Lease Expiry of 12.2 years.

“This acquisition enhances our portfolio with a high-quality landmark asset that we have secured at an attractive cash yield,” Dexus chief executive officer Darren Steinberg said.

“This property is appealing for third party capital and will create an opportunity to grow our funds management business in the year ahead,” the executive added.

Three months ago, a BlackRock Real Assets advised fund in partnership with Primewest outlaid $260m for 140 St Georges Tce which, when it was constructed in 1975, was the Perth CBD’s tallest tower.

In January, Redhill Partners paid Stamford Capital $67.8m for Chevron’s ex-HQ, at nearby 905-919 Hay Street.

Late last year, Andrew Forrest’s private investment company, Fiveight, made its maiden commercial property investment – picking up 190 St Georges Tce from Credit Suisse for $55m.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.