Deka Immoblien has paid A$440m (€270.6m) for an office tower in the heart of Melbourne owned by Dexus Wholesale Property Fund (DWPF).

The sale price of the Flinders Street property reflected an 11% premium to book value at 30 June 2020.

DWPF bought the building for A$194m in 2011 and had undertaken a major foyer refurbishment. The property was 100% occupied and had a weighted average lease expiry of 6.3 years at June 30.

German investor Deka currently owns an adjoining office building in William Street purchased for A$167m in 2009. Its most recent Australian investment is Central Plaza 2 in Brisbane, acquired from Lendlease and the Abu Dhabi Investment Authority for $380m early this year.

DWPF fund manager, Michael Sheffield, said: “This transaction reflects our continued focus on maximising value for investors. We remain committed to driving investment performance through active management, and this transaction is a great example of our approach.”

Sheffield said proceeds of the sale would be used initially to repay debt. They would also be recycled into “higher returning opportunities”.

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