Dexus Property Group confirmed on Thursday that it had sold the Lumley Centre in Auckland to German pension fund Deka Immobilien Investment GmbH for $146 million.
Dexus put the building on the market at the end of April and Deka began a month of due diligence in July. The sale was one in a flurry of about $1 billion of transactions by Dexus and completes its exit from offshore markets.
The 19,479m² building at 88 Shortland St has 15 office floors, and 6 levels of parking for 194 cars accessed from Fort St. Mansons TCLM Ltd built it in 2005.
It was independently valued for Dexus’ June 2013 accounts at $127.5 million, with an initial yield of 7.37%, but was on the group’s books at $140 million. That puts the sale price at a 14.5% premium to 2013 valuation and a 4.3% premium to book value.
Dexus’ other transactions & annual result
A Chinese group has started due diligence on an office tower at 201 Elizabeth St in the Sydney cbd, jointly owned by Dexus & the Perron Group, which the Australian newspaper said could be sold for $A400 million for conversion into $A1 billion of apartments. Dexus described it as “a compelling offer”.
On Wednesday, Dexus announced the $A190 million sale of a development site at Rosebery, in south-west Sydney, to Meriton Apartments and the $A88 million sale of50 Carrington St, in the Sydney cbd, which the Australian understood Brookfield Office Properties was buying.
In July, Dexus said the co-owner of 201 Kent St, in the Sydney cbd, had exercised its pre-emptive right to acquire the property. Settlement of the $A173 million transaction is scheduled for 1 September. That’s the last of the pre-emptive rights resulting from Dexus’ April takeover of the Commonwealth Office Property Fund.
On Friday, Dexus said it made a net profit of $A406.6 million for the June year, lifted funds from operations by 7.6% to $A410.6 million A8.34c/security), increased net tangible assets by 0.8% to $A1.06/ security and had a 6.7% return on equity (8.7% excluding the impact of its $A3.4 billion takeover of the Commonwealth fund with the Canada Pension Plan Investment Board). It’s contained its gearing at 33.7%.
Dexus chief executive Darren Steinberg said the group expected to grow funds from operations & distributions/security by 8.5% in 2015.
Deka, the Lumley Centre buyer, is an active investor in property and has €16 billion of real estate assets under management.
Attribution: Dexus releases, the Australian.