Dexus has a strong track record in delivering quality office developments, which include 1 Bligh Street and 5 Martin Place in Sydney, 123 Albert Street and 480 Queen Street in Brisbane, and 240 St Georges Terrace and Kings Square in Perth.

Developments improve portfolio quality and diversification, while providing access to quality product at favourable rates per square metre and yield metrics.

Approach 

  • DEXUS and DWPF jointly acquired 100 Mount Street, North Sydney for $41 million in April 2016 for a 34 Level, 41,409 square metre premium office tower development and targeting 5 star Green Star and 5 star NABERS Energy ratings 
  • The project is set to benefit from new Sydney Metro and tenant demand for quality product in a market with limited Prime Grade options 
  • A long term lease across 6,229 square metres has already been secured with Laing O’Rourke Australia from final practical completion in late 2018, an opportune time in the Sydney office market supply cycle

Outcomes 

  • Commenced works in July 2016 
  • The development is forecast to achieve a year-one yield on cost of 7.3% and an unlevered project IRR of circa 12-14%
As at 30 June 2016.