Expanding our Melbourne footprint enhancing future returns
Dexus expanded its footprint in the core of the Melbourne CBD through establishing a new joint venture with a third party capital partner to acquire an iconic office building, progressing developments and attracting new customers, enhancing and embedding future value for investors. In FY20, Dexus established a new Joint Venture with GIC that acquired a 50% interest in Rialto Towers at 525 Collins Street in Melbourne. Rialto Towers is a prime-grade, 55 storey building and is one of the largest office buildings in Melbourne’s CBD. The property is expected to benefit from the positive supply-demand dynamics of Melbourne’s office market over the long term. The ‘Paris end’ of the Melbourne CBD is a prominent precinct of the city, with Dexus progressing key city projects at 80 Collins Street, 60 Collins Street, and 180 Flinders Street, due for completion in late August.
80 Collins Street
– 80 Collins is a large-scale project comprising two office towers, a luxury retail precinct and a boutique hotel
– The site was acquired in May 2019 on a development fund-through basis and will deliver a completed project with the leasing of vacant space being undertaken by Dexus
– The 38-level premium office tower (South Tower) was completed in March 2020 and is 95% committed, attracting quality tenants including Herbert Smith Freehills (HSF), Macquarie Bank, McKinsey & Company and DLA Piper
– The existing North Tower is currently 100% occupied
60 Collins Street
– 60 Collins Street comprises 52 and 60 Collins Street which were acquired by Dexus in September 2018, providing the unique opportunity to consolidate the two adjacent sites to create modern office space and quality amenity to a prominent section of Collins Street
– Dexus obtained Development Approval from the Victorian Government to unlock this unique opportunity to deliver approximately 27,100 square metres of Premium grade office space over 25 levels
– As part of the development, the heritage listed terrace at 52 Collins Street will be retained, and a new through lobby connection will establish a link between Collins and Little Collins Street
180 Flinders Street
– 180 Flinders Street is an existing property that was identified as a site that could be repositioned through development and leasing
– The development spans circa 20,300 square metres of prime office space and vibrant laneway retail amenity, comprising a new 10-storey A-Grade office tower, extensive refurbishment of the existing buildings at 189 and 180 Flinders Street and restoration of the heritage façade
– Dexus secured John Holland as the anchor tenant in March 2018, and the property is now 72% committed ahead of its completion in August 2020.