DEXUS Property Group acquires $161 million Brisbane office tower

DEXUS Property Group (ASX: DXS) announced Wednesday that it has acquired a Brisbane office tower for $161.3 million.

Dubbed “AM60” the 21-story building boasts 21,263 square meters of office and retail space, and is 100% leased to “high-calibre” tenants. Office building acquisitions are dependent on quality occupants, and AM60’s packed out corporate clients, including anchor tenant Worleyparsons Limited (ASX: WOR), should ensure steady sales from this latest investment.

“Representing a core investment opportunity, AM60 is an important addition to DWPF’s [DEXUS Wholesale Property Fund’s] $2 billion office portfolio,” said DWPF fund manager Graham Pearson in a statement. “This acquisition is in line with DWPF’s strategy of investing in high-quality office properties which are well located in key Australian CBD office markets and with attractive financial metrics.”

The building has an initial 9.1% yield, with a weighted average lease expiry of 4.3 years and no major potential moves until August 2017.

Since June 2012, DEXUS has raised $900 million in equity and purchased over $1 billion of office, retail, and industrial properties to bolster its strategic portfolio push.

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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