Deka Immobilien pays Dexus $440m for Flinders Street office

The entrance of 452 Flinders Street. Deka Immobilien also owns the 15 William St office captured in the right hand side of this image.

Deka Immobilien is outlaying $440 million on an A-grade Melbourne CBD office.

The 22-storey, 38,000 square metre building at 452 Flinders Street is costing the German investor 11 per cent over the June 30 book value.

Vendor, Dexus Wholesale Property Fund, paid $194m in 2011, later undertaking a refurbishment.

Developed in 1994, it is fully leased with a weighted average lease expiry of 6.3 years.

It has delivered an unlevered total return of 24 per cent per annum since 2018.

Assuming the Foreign Investment Review Board permits the divestment, settlement is scheduled for mid-November (story continues below).

Proceeds, the vendor said, will repay debt and be recycled into assets with potential higher returning opportunities.

Deka holds a valuable and diversified Australian portfolio.

Last November it acquired a Brisbane CBD office at 66 Eagle St for about $380m.

A year earlier it outlaid $56m for Bvlgari’s flagship store at 64-66 Castlereagh St in Sydney.

In Melbourne, it holds a commercial investment at 15 William St, on the opposite side of Custom House Lane to 452 Flinders St, which cost $167m in 2009.

Dexus renovated 452 Flinders Street, which cost it $194m in 2011.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of