Dexus enhanced the quality and value of its portfolio with the completion of two office developments at 5 Martin Place in Sydney and 480 Queen Street in Brisbane, generating a combined total return greater than 20%.

5 Martin Place, Sydney

Approach 

  • Acquired 50% interest of 5 Martin Place in April 2014 as part of the takeover of the Commonwealth Property Office Fund (CPA) 
  • Repositioned the leasing and marketing approach in collaboration with co-owner Cbus Property 
  • Re-designed the retail space to drive higher value

Outcomes 

  • Secured major tenant, Challenger, in December 2014 
  • Completed construction in June 2015, achieving an Internal Rate of Return (IRR) of 35.8% and an increase in value uplift of $35.7 million or 31.5% as at 30 June 2016 
  • Achieved occupancy of 98% as at 30 June 2016
  • Awarded 2016 winner Urban Development at the Urban Taskforce Development Excellence Awards and for Commercial Development at the UDIA NSW Meriton Awards for Excellence

480 Queen Street, Brisbane

Approach 

  • Acquired 480 Queen Street, Brisbane, a Premium office development on a fund-through basis in partnership with DWPF in April 2013 
  • The property was acquired on a capitalisation rate of 7.25%, and leveraging exposure to the Brisbane CBD office market 
  • 480 Queen Street has a focus on sustainability, public art, precinct activation and superior amenity

Outcomes 

  • 480 Queen Street opened in June 2016, achieving an IRR of 20.9% and an increase in value uplift of $68.2 million or 24.7% as at 30 June 2016 
  • Attracted some of Australia’s corporate elite, achieving occupancy of 100% as at 30 June 2016 
  • Achieved 6 star Green Star design rating 
  • Delivered community amenity including Australia’s first elevated public park within an office building, public art and award winning food and beverage
As at 30 June 2016.