Tall & Urban News

Dexus Property Group is set to acquire the octagon-shaped tower at 80 Collins Street from the Queensland government’s investment arm, QIC, in a deal industry sources say is worth at least AU$1.3 billion (US$920 million).

The acquisition of the precinct had some of Australia’s largest listed property investors vying for the QIC controlled development. The deal was struck on a yield of around 5 percent. Charter Hall, Mirvac and Dexus were the final remaining bidders for the mega-precinct, brokered by JLL and Savills.

Dexus now commands a large portion of the prized “Paris end” of Collins Street, having amalgamated two sites, spanning 35,000 square meters, in September 2018.

Surging demand for office space in Melbourne has pushed the vacancy rate to below 4 percent. The billion-dollar mixed-use precinct comprises an existing 52-story tower, while QIC is developing a 39-story office tower, along with about 6,000 square meters of retail and a 300-key hotel managed by Singaporean brand Next.

Committed tenants include Macquarie – taking 6,000 square meters of the 43,000-square-meter tower for its Melbourne headquarters, McKinsey and DLA Piper. The 39-story building has street frontage on Little Collins, Collins, and Exhibition Streets.

Multiplex is building the Woods Bagot – and UN Studio-designed 6-star Green Star tower, which overlooks the Royal Botanic Gardens. QIC owns the striking octagon-shaped tower at 80 Collins Street and first flagged plans to create a major precinct around the heritage-listed Nauru House (80 Collins Street) in 2008.

For more on this story go to the Urban Developer.