Stockland will sell its 50 per cent stake in the Waterfront Place office tower and Eagle Street Pier retail and restaurant precinct in Brisbane to Dexus for $317.5 million.
The tower and pier are owned by Stockland with the Future Fund, which is also selling its interest to give a total sale price of $635m.
Dexus Property Group and Dexus Wholesale Property Fund will each take a 50 per cent stake in the sites.
Stockland said it would generate $296m from the sale of the 40-story office tower, which is a 3 per cent premium on its December 2014 book value, and will also gain $21.5m from the Eagle Street Pier sale.
The sale is part of a strategy to reduce office exposure at this point in the cycle and shift capital into other opportunities, Stockland chief executive Mark Steinert said.
Dexus Property chief executive Darren Steinberg said the purchases provided a long-term investment opportunity and expanded the group's presence in the Brisbane central business district,
"The acquisition of the Waterfront Place complex enables both Dexus and DWPF to access a premium grade property at an attractive price point in a market where we have established expertise and which is expected to improve over the medium term," he said.