Singapore’s Peakstone makes Dexus $530m offer for 45 Clarence Street

Upper levels of the office have Sydney and Darling harbour views.

Singapore based Peakstone is paying Dexus $530 million for a renovated 30-year old building at 45 Clarence Street, at the western edge of Sydney’s financial district.

The deal is being struck on a five per cent passing yield.

Part of the ground floor is tenanted to a restaurant.

The price also comes in over the June, 2019, book value ($507m).

Adjacent to the Barangaroo precinct, the 28-storey, 32,000 sqm A-grade Clarence Street office is fully occupied, with a weighted average lease expiry of 3.3 years.

The office occupies a c4000 square metre site

Upper levels enjoy Sydney and Darling harbour views.

It also contains 169 car parks.

The Asian capital manager sourced 45 Clarence Street after making an unsolicited offer, off-market (story continues below).

Mirvac developed 45 Clarence Street in 1990. Dexus purchased it in December, 1998.

Its purchase now rests on the deal receiving Foreign Investment Review Board approval.

Elsewhere in the city, Dexus, with project development partner Frasers Property Australia, was in April approved to develop a $2.5 billion two-tower office complex at Central Station.

A month earlier, in Melbourne, it was permitted to construct a 26-floor commercial building at the north east corner of Collins and Exhibition streets.

It also paid Kuwait sovereign wealth fund St Martin’s $644m for a half share of Rialto Melbourne at the south east corner of Collins and King streets.

At the start of the year, Dexus unveiled plans to build a $2.1b mixed-use project at Eagle Street Pier, in Brisbane.

It will use sale proceeds from 45 Clarence Street to pay debt.

Share or Recommend article

Marc Pallisco

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

Marc Pallisco