By a staff reporter
Dexus Property Group Ltd and Dexus Wholesale Property Fund (DWPS) have jointly acquired a strategic office investment in Brisbane.
In a statement to the Australian Securities Exchange, Dexus said it had entered into an agreement with DWPS to each acquire 50 per cent stake in 480 Queen St Brisbane.
The property comprises a premium-grade office building which is set to be developed by Grocon.
The total cost payable is expected to be approximately $543.9 million, representing a capitalisation rate of 7.25 per cent.
"This investment has been acquired with low transaction costs and on a fund-through basis with DEXUS and DWPF jointly acquiring the land and funding the construction costs on a progressive basis," Dexus said.
Chief executive officer Darren Steinberg said the acquisition leverages the group's exposure to quality real estate in the core Brisbane CBD office market, adding to 123 Albert Street and 12 Creek Street.