A Dexus-owned office tower in the heart of Sydney's CBD has been sold to the Singapore-based Peakstone for $530 million.

The sale of 45 Clarence Street was finalised following an off-market unsolicited offer from the Asian capital manager, and is subject to the purchaser receiving FIRB approval.

Situated in the western corridor of Sydney’s financial district, the A-grade office tower consists of 32,000 square metres of office space spread across 28 levels.

At 31 December 2019, the property was 100 per cent occupied and had a weighted average lease expiry of 3.3 years.

Dexus CEO Darren Steinberg said the sale consistent with the property’s book value at 31 December 2019 and supported the strong investment demand for prime quality office assets in the Sydney CBD.

“This transaction reinforces the resilience of prime quality office asset values in the Sydney CBD and enables us to recycle capital into higher returning opportunities that we expect will become more prevalent over the coming period," he said.

The transaction follows the completion or exchange of more than $800 million of property divestments across the group during FY20.

Dexus said the net sale proceeds will initially be used to repay debt.

Similar to this:

The Annex Brisbane to deliver 'next generation' offices

Rare opportunity to acquire iconic asset in Sydney

Charter Hall celebrates ‘topping out’ of 130 Lonsdale Street in Melbourne