Dexus and Canada Pension Plan Investment Board (CPP Investments) have sold a second Sydney office building in as many days.
The sale of 201 Miller Street in North Sydney for A$152m (€95.3m) comes a day after the joint-venture partners sold a 50% stake in Grosvenor Place to Blackstone for A$925m.
The buyer of 201 Miller Street was not named, but was said to be an offshore investor that will require approval from the Foreign Investment Review Board to complete the transaction.
The building was 84% occupied with a weighted-average lease expiry of 1.9 years on 29 October.
Proceeds from the sale will be used to repay debt.
Dexus CIO Ross Du Vernet said the transaction continued the group’s strategy of selective asset recycling and reinvesting into higher-returning opportunities.
Dexus and CPP Investments set up the Dexus Office Partnership in 2014 when they acquired and privatised a listed office trust.
The partnership was valued at almost A$4bn in 2014, but as of the middle of 2021 it had assets under management of A$2.6bn.
Dexus and CPP Investments own a stake in Central Place Sydney, a development by Dexus and Frasers Property Australia with a total end-value estimated at A$2.2bn.