Australian real estate investment trust Dexus has snapped up QIC Global Real Estate’s 80 Collins Street office development project for A$1.48bn (€925.3m).

In March, IPE Real Assets reported that Dexus is planning to buy the central Melbourne office project with a capital partner.

Dexus Wholesale Property Fund (DWPF) and Dexus have jointly now purchased the asset and will own 25% and 75% interest respectively.

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.

Dexus has been actively accumulating keenly-sought–after sites in the area, including its recent purchases of both 60 and 52 Collins Street.

Darren Steinberg, Dexus CEO, said the acquisition of 80 Collins Street further enhanced the group’s scale and presence “in a prime location where our customers want to be”.

He added that, importantly, vacancy in the Melbourne CBD office market was nearing an all-time low.

Supported by strong population growth, the Melbourne market had enjoyed significant pre-commitments across the upcoming supply pipeline, he said.

Following the transaction, Dexus’ office portfolio weighting to Melbourne will rise from 9% to 16%.

A Dexus spokesperson told IPE Real Assets that DPWF would initially fund its share of the purchase with debt.

The listed firm has launched a $900m placement institutional and professional investors. It is also raising a further $50m from the retail shareholders of the listed vehicle.