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Australian property group Dexus has agreed to sell three office properties in Sydney and Brisbane for a combined gross sale price of AUD 715 million (USD 500.43 million), surpassing its divestment target set for FY27. The transaction aligns with the company's strategy to streamline its portfolio amid challenging conditions in the commercial real estate market. Dexus said the assets were sold at values consistent with their independent valuations as of June 30, with the transaction expected to be completed in October, subject to customary conditions, including approval from Australia's Foreign Investment Review Board (FIRB).
Dexus has entered into agreements to sell three office properties located in Sydney and Brisbane for a combined gross sale price of AUD 715 million (USD 500.43 million), enabling the Australian property group to exceed its divestment target for FY27.
The company announced that the sale forms part of its ongoing portfolio optimisation strategy, which was introduced in early 2025 when it set a target to divest approximately AUD 2 billion worth of assets by the end of FY27. The programme was initiated against the backdrop of a subdued commercial property market, with asset owners seeking to rebalance portfolios and strengthen capital positions.
According to Dexus, the latest transaction takes the value of completed and agreed asset sales beyond its previously announced divestment target ahead of schedule. The company has been pursuing selective disposals as part of its broader capital management strategy while navigating weaker demand and valuation pressures across Australia's office property sector.
The three office assets have been sold at a combined gross sale price that is in line with their independent valuations as of June 30. The company said the pricing reflects prevailing market conditions and indicates that the assets have been transacted at their assessed market value.
Settlement of the transaction is expected to take place in October, subject to the fulfilment of customary conditions. These include approval from Australia's Foreign Investment Review Board (FIRB), where applicable, along with the completion of other standard closing requirements.
Australia's commercial office market has experienced a prolonged period of adjustment following changes in workplace occupancy patterns and higher borrowing costs, prompting several institutional property owners to review asset portfolios and recycle capital into priority investments. Against this backdrop, Dexus has continued to execute its divestment strategy while maintaining focus on capital discipline and balance sheet management.
The completion of the sale will further strengthen the company's portfolio repositioning efforts and marks a significant milestone in its asset recycling programme, with the FY27 divestment objective now exceeded following the agreement to dispose of the three office properties.
Source - Reuters
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