Investa, BGO acquire Dexus offices for $715m
Dexus has sold a three-office portfolio to Investa and Canadian fund manager BGO for $715 million.
The deal, mooted by realestatesource.com.au last month, includes Brisbane’s 123 Albert Street and Barangaroo offices 30 The Bond, at 30-34 Hickson Road, and 36 Hickson Rd.
For the first time, BGO is revealed as Investa’s investment partner.
CBRE’s James Parry, Flint Davidson and Mitch Noonan, together with Savills’ Ben Schubert and Seb Turnbull, were the agents.
Brisbane, Sydney offices
Investa Commercial Property Fund (ICPF) and BGO will each acquire a 50 per cent interest in the 40,000 sqm 123 Albert St office tower, while BGO will acquire the two Sydney assets outright.
Investa will manage the portfolio.
The Sydney buildings are expected to undergo a capital investment and repositioning program alongside a targeted leasing campaign, as BGO seeks to improve occupancy and capitalise on the continued evolution of the Barangaroo precinct following the arrival of the Metro.
The $715m price is in line with the portfolio’s combined independent valuation at June 30.
It is about 4pc below its combined December, 2025, book value.
Settlement is scheduled for October, subject to FIRB approval.
About a third of the purchase price is deferred for 30 months at a 6.25pc annual coupon.
The transaction completes Dexus’s announced $2 billion divestment program almost a year ahead of its FY27 target and will trim the group’s look-through gearing by about two percentage points (continues below).
Dexus chief executive Ross Du Vernet said the transactions demonstrated the group’s capital management strategy.
“Today’s announcement demonstrates our disciplined approach to capital management and meeting commitments to security holders,” he said.
“We have a high quality investment portfolio and transactions like these show we can secure liquidity at pricing which represents a significant premium to what is implied in the Dexus security price,” he added.
“We remain focused on initiatives that demonstrate and unlock value,” according to the executive.
Investa chief executive Peter Menegazzo said the acquisition reflected confidence in Australia’s major CBD office markets.
“This acquisition reflects our long-term conviction in Australia’s premier office markets and the enduring demand for high-quality workplaces that enhance customer experience, productivity and performance,” he added.
“These assets are strategically positioned within two of the nation’s strongest CBD office markets and present compelling opportunities to create additional value through Investa’s active asset management, leasing expertise and customer-centric operating platform,” according to the executive.
ICPF fund manager Brendan Looby said the Brisbane acquisition complemented the fund’s strategy and expanded its exposure to the city following the completion of 360 Queen St.
“123 Albert Street is a strong fit with ICPF’s strategy of investing in high-quality, well-located assets that can deliver sustainable long-term performance for our investors,” he added.
“The investment extends ICPF’s presence in Brisbane, following the opening of 360 Queen Street earlier this year, and further increases the Fund’s exposure to Premium-grade office assets,” according to the executive.
BGO’s role also expands its investment partnership with Investa, which has grown to about $1.8b of Australian CBD office assets including 10-20 Bond St and 100 Mount St in Sydney.
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