Quintessential swoops on Sydney tower

Dexus purchased 1 Margaret Street in late 1998.

Dexus is a step closer to selling one of two Sydney offices listed last quarter.

The group is banking $293.1 million – a notable drop on the ($350m) December, 2022, book value – for 1 Margaret Street, which it has held since late 1998.

Melbourne based fund manager Quintessential Equity is the buyer, entering due diligence last week.

Dexus listed the office with another, larger, pricier one, 44 Market St, which it bought in two parts, in 1987 and 1995, for $109m.

The offerings come 18 months since the fund manager sold two more Sydney offices: 383 Kent St for $410m to Charter Hall, which owns neighbouring properties, and a half stake in 309-321 Kent, which was picked up by AsheMorgan for $401m.

Proceeds paid down debt or were tipped into the company’s development pipeline including, in Sydney, offices around Central station amongst them, Atlassian’s headquarters.

1 Margaret Street

On c2000 square metres, 1 Margaret St was developed in 1984 and last renovated four years ago.

The building contains 20,637 sqm of A-grade lettable area with average 1120 sqm floorplates (story continues below).

AsheMorgan paid Dexus $401 million for a stake of 309-321 Kent Street.

There are also end of trip facilities and 111 car parks.

Quintessential will reposition the asset which has a short (two year) Weighted Average Lease Expiry; the revamp cost is expected to circle $90m.

In November, the fund manager paid Australian Unity $73m for an Adelaide office – 30 Pirie St – abutting another, 100 King William St, it has owned twice,

In that city, the group is also developing the Entrepreneur and Innovation Centre – a prime piece of the $1.9 billion Lot Fourteen redevelopment.

Quintessential is developing offices for the City of Greater Geelong, in Victoria, too.

CBRE’s Flint Davidson, Michael Andrews and James Parry with Colliers’ Adam Woodward and James Mitchell marketed 1 Margaret St.

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Marc Pallisco

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