The Dexus (ASX: DXS) share price is in focus today after announcing the sale of its 50% interest in 480 Queen Street, Brisbane for a net price of $657.3 million, roughly 4% below its previous book value. The deal is expected to free up capital and support Dexus's ongoing strategy.
Image source: Getty Images
What did Dexus report?
- Dexus has exchanged contracts to sell 480 Queen Street, Brisbane for a total gross price of $700 million (net $657.3 million).
- The property was jointly owned by Dexus and Dexus Wholesale Property Fund, each with a 50% stake.
- The sale price aligns with the most recent independent valuation as at 30 June 2026, and is about 4% below the 31 December 2025 book value.
- Dexus's share of net sale proceeds is approximately $329 million, with most due at settlement in December 2026 and the rest deferred to June 2028 at a 6% coupon.
- The transaction is expected to reduce Dexus's pro forma look-through gearing by about 1 percentage point.
What else do investors need to know?
The deal is still subject to approval from the Foreign Investment Review Board (FIRB), but is otherwise unconditional. Dexus will receive around $259 million at settlement, with a further $70 million paid in two years at an annual coupon, supporting capital management.
480 Queen Street is a Premium grade office building in Brisbane CBD, with occupancy of 89.7% and a weighted average lease expiry (WALE) of 3.8 years as at 30 June 2026. Dexus and DWPF remain invested in Brisbane's commercial property market, notably via the multi-tower Waterfront precinct, where One Eagle Street is 93.8% occupied and the North Tower is already 71% pre-leased.
What did Dexus management say?
Ross Du Vernet, CEO and Managing Director of Dexus, said:
This transaction is a further demonstration that we are executing on our strategy and will release capital to assist in funding higher returning initiatives. We retain a significant office exposure in Brisbane, focused on the irreplaceable Waterfront precinct with embedded growth options.
What's next for Dexus?
The planned sale is part of Dexus's strategic focus on recycling capital to fund higher-returning projects and initiatives within its large real asset platform. The company remains committed to its Brisbane office presence, particularly through the ongoing development and leasing of its flagship Waterfront complex.
Investors can expect Dexus to continue exiting non-core assets and deploying capital to opportunities aligned with its long-term growth and sustainability objectives.
Dexus share price snapshot
It has been a disappointing 12 months for the Dexus share price. It is down 15% over the period, compared to a 3.2% gain by the S&P/ASX 200 index (ASX: XJO).
