A 50/50 joint venture between Dexus and Perron Group Ltd. is selling a collective 75% stake in a commercial property development in Sydney's central business district to a Charter Hall Group-managed consortium involving Abacus Property Group.
The consortium is paying a total consideration of A$630.0 million for the property at 201 Elizabeth St. Settlement of the agreed transaction is expected by mid-November, while the acquisition of the remaining 25% stake in the property is subject to a put-and-call option that will expire by the end of October 2020.
The property changing hands as part of the deal comprises a 99.9%-leased commercial building with 34 levels of office space and more than 36,983 square meters of net lettable area. It also includes a lower ground food court, which spans over 1,428 square meters and home to 12 retail tenants, as well as basement parking space for 169 cars.
Dexus' partnership intends to build a 350-room luxury hotel, retail and an apartment block at 201 Elizabeth St. In March, Starwood Capital LLC reportedly backed out from buying the A$400 million hotel component of the integrated development, after deeming the asset too expensive.
Aside from the property transaction, Charter Hall and Abacus are also teaming up to take over Australian Unity Office Fund. The pair are currently conducting due diligence for their indicative A$3.04-per-unit takeover proposal, which values the targeted office-focused real estate investment trust at A$495.0 million.