Dexus adds $700m Brisbane tower sale to divestment drive

Dexus has continued its asset sell-down program agreeing to divest Brisbane office tower 480 Queen Street for a gross sale price of $700 million just after surpassing its $2 billion divestment target ahead of schedule.

The property, jointly owned by Dexus and the Dexus Wholesale Property Fund (DWPF), has been sold at a net price of $657.3 million, 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 earlier this week that it had exceeded its FY27 divestment target after agreeing to sell three office properties in Sydney and Brisbane for a combine $715 million.

Dexus chief executive and managing director Ross Du Vernet said the latest sale reinforced the group's capital management strategy.

"This transaction is a further demonstration that we are executing on our strategy and will release capital to assist in funding higher returning initiatives," Du Vernet said.

"We retain a significant office exposure in Brisbane, focused on the irreplaceable Waterfront precinct with embedded growth options."

Located in Brisbane's CBD, 480 Queen Street is a Premium grade office building with occupancy by income of 89.7% and a weighted average lease expiry (WALE) of 3.8 years.

Settlement is expected 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.

Dexus said the transaction would reduce its pro forma look through gearing by around the one percentage point.

Despite the sale, Dexus and DWPF 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 what Dexus sees as long-term growth opportunities within the Brisbane office market.