Dexus has announced the establishment of a new Joint Venture with Singapore-based GIC exchanging contracts to acquire a 50 per cent interest in Rialto Towers, 525 Collins Street, Melbourne, for $644 million.

GIC will hold a 90 per cent share in the joint venture and Dexus will hold the remaining 10 per cent.

Dexus is the investment manager of the venture and has been appointed as the manager of the entire Rialto Towers complex.

At a Glance:

• GIC will have a 90 per cent share in joint venture and Dexus the remaining 10 per cent
• The venture will hold 50 per cent interest in Rialto Towers at $644 million
• The property is at 535 Collins St, Melbourne

“We are pleased to continue to grow our relationship with GIC, enabling them to extend their investments into the Australian office market," said Dexus CEO, Darren Steinberg.

"In the current environment, we are focused on business continuity, and pleasingly were able to close this off-market transaction within our targeted timeframes.”

One of the largest office buildings located in Melbourne's CBD, Rialto Towers is an iconic prime-grade, 55 storey structure.

It is well located on Collins Street with good access to transport and other key amenities.

The property is 91.7 per cent occupied with a weighted average lease expiry of 4.6 years as at 1 March 2020.

Rialto Towers is expected to benefit from the positive supply-demand dynamics of Melbourne’s office market over the long term.

The property is expected to settle in May 2020 (subject to FIRB approval), with Dexus’s interest funded from existing debt facilities.

This transaction follows the settlement of GIC’s additional investment in the Dexus Australian Logistics Trust, announced to the Australian Securities Exchange on 1 April 2020, and further strengthens Dexus’s growing relationship with GIC.

Similar to this:

North Shore Health Hub sold by Dexus

Surry Hills office building sold for $33.5 million

Tenancies available in $300 million South Yarra commercial tower