Dexus and its capital partners are poised to buy QIC Global Real Estate’s 80 Collins Street office development project for around AUD1.4bn (€882m), according to market sources.

A spokesperson for Dexus told IPE Real Assets: “Dexus, along with capital partners, is undertaking exclusive due diligence on 80 Collins Street, Melbourne.

“The deal is not complete so we cannot comment on capital partners or funding sources.”

Industry sources said three leading Australian fund managers – Dexus, Mirvac and Charter Hall - were all on the first shortlist, backed by some of the world’s largest sovereign wealth funds and global investors.

Dexus recently formed industrial partnerships with GIC and M&G Real Estate and it has more than 70 domestic and global groups, including Canada Pension Plan Investment Board and Korea’s National Pension Service, invested in its suite of funds and partnerships.

80 Collins is a mix of an ageing office tower, a new premium office block still under construction, a proposed hotel and a retail precinct at the Paris end of Collins Street.

QIC began planning the project more than a decade ago.

Bidding on the complex is believed to have ranged from A$1.3bn to A$1.4bn. However, the completed project would be worth considerably more, according to industry sources.

A transaction on 80 Collins Street would set a record for the sale of a commercial project in Melbourne.