Dexus and Canada Pension Plan Investment Board (CPP Investments) are selling their 50% stake in an Australian office building to their joint owner, Cbus Property for around A$310m (€194m).
The building, located at 5 Martin Place in Sydney is being sold at a discount of about A$100m on the valuation of the entire building at the end of last year.
Market observers said the price that Cbus Super’s property arm would pay would show a yield of about 6.1% which is described as “the new normal” for prime office towers.
Dexus held a 25% stake on its balance sheet, while CPP Investments owns the other 25%. They formed a partnership in 2014 to own a number of office buildings, under the Dexus Office Trust.
Dexus and Cbus Property jointly developed the project, an urban renewal scheme comprising the redevelopment of the existing heritage building, which involved the preservation of the heritage façade and re-integration of the heritage elements into the final design of a 19-level modern office tower.
Dexus and CPP Investments sold two Sydney buildings in 2021 – 201 Miller Street in North Sydney and a 50% stake in Grosvenor Place.
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