Dexus sells Brisbane tower for 700 million

Dexus has agreed to sell its Brisbane office tower, 480 Queen Street, for a gross sale price of $700 million, as part of its asset sell-down program. The property, jointly owned by Dexus and the Dexus Wholesale Property Fund, was sold at a net price of $657.3 million, which is in line with its independent valuation on 30 June 2026 and around 4% below its book value on 31 December 2025.

The transaction follows Dexus’ announcement that it had exceeded its FY27 divestment target after agreeing to sell three office properties in Sydney and Brisbane for a combined $715 million. This sale reinforces the group’s capital management strategy, according to Ross Du Vernet, Dexus chief executive and managing director.

Sale details reveal that 480 Queen Street, a Premium grade office building, is expected to settle on 1 December 2026, subject to Foreign Investment Review Board approval. Of Dexus’ 50% share, approximately $259 million of the proceeds will be received at settlement, with a further $70 million deferred until June 2028 and attracting a 6% annual coupon.

Located in Brisbane’s CBD, 480 Queen Street has an occupancy rate of 89.7% and a weighted average lease expiry of 3.8 years. The transaction will reduce Dexus’ pro forma look through gearing by around one percentage point.

Dexus and the Dexus Wholesale Property Fund will retain a substantial presence in Brisbane’s office market through their jointly owned Waterfront precinct, which includes multiple office towers and retail space on a one-hectare riverfront site. The existing One Eagle Street tower is 93.8% occupied, while the North Tower redevelopment is already 71% pre-leased, providing long-term growth opportunities within the Brisbane office market.

Ross Du Vernet noted that the group retains a significant office exposure in Brisbane, focused on the irreplaceable Waterfront precinct with embedded growth options. Dexus’ strategy is to execute on its capital management plan, releasing capital to assist in funding higher returning initiatives.

The sale is subject to Foreign Investment Review Board approval, and settlement is expected on 1 December 2026. Once the sale is complete, Dexus will have achieved a significant milestone in its asset sell-down program, releasing capital for future investments and reinforcing its commitment to the Brisbane office market, where companies consider office space strategies.