Dexus buys the other half share for MLC Tower

Dexus bought the remaining 50 per cent interest in MLC Centre for $800 million. The largest freehold site in Sydney’s CBD will be fully managed and operated by Dexus.

After placing the asset for sale via an international expression of interest campaign last week, GPT and Dexus have now entered into a binding agreement. Dexus and Dexus Wholesale Property Fund (DWPF) will each have an additional 25 per cent interest in the property for the total $800 million price tag. The capital partners purchased their initial interest in the MLC Centre last July 2017 for $722 million.

The sale price of $800 million represents a 3 per cent premium to GPT’s December 2018 book value. GPT added that the A-grade property achieved an annualised return in excess of 20 per cent per year over the past three years.

“The proceeds from the sale will be reinvested primarily into our development pipeline, which we believe will generate better long term returns for investors,” said Bob Johnston, GPT chief executive.

The transaction is expected to settle early next month.


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