Thinking creatively to lease space at 60 Castlereagh Street, Sydney.

Dexus approach

  • 60 Castlereagh Street, Sydney was acquired in April 2014 as part of the CPA transaction
  • The property faced limited leasing enquiry on the lower office floors, which had been mostly vacant for over three years due to a lack of natural light and poor floor configuration
  • Identified an opportunity to create direct stair access to Level 1 to enhance the appeal of the property to a new category of prospective tenants
  • Adopted a fitted suites offering for Level 15

Value created

  • Secured a number of new tenants including:
    • The University of Newcastle over Level 1 and part Level 2 across 2,900 square metres, as a result of the installation of new stairs
    • SAI Global Property Division across the whole of Level 3
    • Two new tenants across the entire floor of Level 15
  • Improved occupancy from 94.0% at acquisition to 100% at 30 June 2015
  • Increased WALE from 4.5 years to 5.5 years
  • Achieved one year total return of 12.3% and value uplift of $17.3 million