Dexus (ASX:DXS) to bank $555m from Parramatta & Sydney CBD office sale

Property manager giant Dexus Property Group (ASX:DXS) has unveiled its plans to offload its stake in two office buildings in Parramatta and Sydney CBD with proceeds to repay debt.

Dexus Office Partnership has a 50 per cent ownership stake and will divest properties at 140 and 150 George Street, Parramatta for $154 million.

The 150 George Street property spans almost 22,000 square metres in Parramatta’s central business district and “has become vacant in the past month following the known departure of the Commonwealth Bank” . The 140 George Street property has just over 2,200 square metres. The sale was the result of an unsolicited off-market offer, and settlement is expected in August 2022. 

Meanwhile, 309-321 Kent Street, Sydney will also be sold with a price tag of $401 million. The property spans over 47,700 square meters with a 93 per cent occupancy with a weighted average lease expiry of 3.5 years. The sale was the result of an on-market sales campaign with deal slated to settle in April next year.

Shares in Dexus Property Group (ASX:DXS) are trading 0.4 per cent higher at $11.12.