On Monday, Dexus announced that they were partnering with Singapore-based investment fund Mercatus Co-operative to acquire the globally renown office tower at 1 Bligh Street, Sydney for $375million.

With a 33.3% stake in the Skyscraper, Dexus is the investment manager in the joint venture and will hold 10% of the share, while Mercatus will hold the remaining 90% indirectly.

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.”

Mercatus CEO Tan Ser Joo concluded  “This acquisition is part of our strategy to diversify our portfolio and to generate sustainable long-term returns, we are honoured to partner with Dexus, one of Australia’s leading real estate groups, in our first direct real estate investment overseas.”

Dexus and Cbus Property developed the 29-storey 1 Bligh Street tower, which is anchored by blue chip tenants including Clayton Utz, Bloomberg Australia and the Commonwealth of Australia.

The settlement of the acqusition is subject to FIRB approval, with Dexus’s interest funded from existing debt facilities.

FURTHER INFO:

> Sydney Morning Herald 22/03/2021
> Dexus News 22/03/2021

The post Dexus & Mercatus $375m Joint Venture Deal first appeared on Capstone.