Dexus Property Group is continuing to reshuffle its portfolio with a Melbourne office tower worth about $80 million the latest asset in play.
After moving to sell buildings in Sydney and Auckland, the listed office giant is thought to have secured Powercor Australia as a tenant at 40 Market Street on a 15-year lease and attracted interest from an institutional buyer.
Dexus picked up the tower in the core of the Melbourne CBD in January 2013 for $46.7m as a value adding opportunity.
The new lease and an overhaul of the nine-level B-grade office building mean the group is positioned to reap a strong profit on a building it had classed as part of its trading portfolio.
While the deal has been kept under wraps, its broader significance lies in the fact that the tower could change hands for a yield in the low 6 per cent range. This, along with the upcoming of sale of two prime Melbourne buildings by Cbus Property on even tighter metrics, could spur a re-rating of the city’s office assets.
The 40 Market Street building spans a net leaseable area of about 12,000sq m and sits on a prime corner location. Dexus declined to comment yesterday.