DEXUS has forked out $339 million to buy a 49% interest in a trust that owns Perth’s Capital Square Tower.
In the off-market deal, Dexus has purchased an equity stake in the 98 Mounts Bay Road Tower, through the investment into the holding unit trust.
The premium-grade office tower occupies a 13,418sqm site in the CBD’s Western precinct, with 60,635sqm of net lettable area, the property was valued externally at $970 million at 30 June 2021, with $450 million of senior secured debt.
Part of Dexus’s $339 million acquisition will be used by the trust as a new receivable loan to the co-owner, which will be repaid in four years, with Dexus’ share in the loan receivable at around $77 million.
“This acquisition enhances our portfolio with a high-quality landmark asset that we have secured at an attractive cash yield. This property is appealing for third party capital and will create an opportunity to grow our funds management business in the years ahead,” said Darren Steinberg, CEO of Dexus.
The 2018 built tower was built to serve as the headquarters for Woodside Energy Limited and is currently 100% occupied and holds a WALE of 12.2 years, upon settlement.
“Capital Square is one of the leading workplaces in Australia, incorporating technologies and specifications supporting superior sustainability and customer experience outcomes,” said Kevin George, executive general manager of Dexus, Office.
The price of acquisition represents a 5.1% passing yield and will be funded through debt facilities.
The acquisition price will be accretive to adjusted funds from operations and distributions per security for FY22.
“We are pleased to be able manage the asset and reconnect with Woodside as a valued customer in our portfolio,” concluded George.