22 Mar 2021

Dexus establishes new JV to acquire interest in 1 Bligh Street Sydney

22 March 2021

Dexus establishes new JV to acquire interest in 1 Bligh Street, Sydney

Dexus today announced the establishment of the Mercatus Dexus Australia Partnership (“MDAP”) joint venture with Mercatus Co-operative Limited (“Mercatus”). MDAP has exchanged contracts to acquire a 33.33% interest in 1 Bligh Street, Sydney, for $375 million1.

Mercatus will hold an indirect 90% share in MDAP, with Dexus holding the remaining 10%. MDAP is structured to enable additional office acquisitions in the future. Dexus is the investment manager of the JV and post-acquisition will continue to manage 1 Bligh Street.

The establishment of MDAP and acquisition of a further interest in 1 Bligh Street (increasing Dexus’s effective ownership interest to 36.66%) is consistent with Dexus’s strategic initiative of expanding and diversifying the funds management business while progressing the objective of being the wholesale partner of choice.

Dexus CEO, Darren Steinberg said: “This transaction demonstrates the ongoing strength of demand from international institutions for high quality Australian office asset exposure under Dexus platform management.”

Dexus EGM, Funds Management, Deborah Coakley added: “We are pleased to have been able to work with Mercatus in securing their first direct real estate investment in Australia, while using our internal capabilities to close this transaction.”

1 Bligh Street is an iconic premium-grade, 29 storey building located in Sydney’s Central Business District. It is well located in the financial core with good access to transport and other key amenities. The property is 99.5% occupied with a weighted average lease expiry of 5.4 years as at 31 December 2020. Major customers include Clayton Utz, Bloomberg Australia Pty Ltd and the Commonwealth of Australia.

Settlement of the acquisition is subject to FIRB approval, with Dexus’s interest funded from existing debt facilities.

Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited.

  1. Reflecting the acquisition price for the 33.33% interest in 1 Bligh Street (of which Mercatus will hold a 90% share and Dexus a 10% share) and excludes acquisition costs, other costs and purchase price adjustments.



Rowena Causley

Head of Listed Investor Relations

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