Dexus Sells 480 Queen Street, Brisbane for $700 Million

Dexus (ASX:DXS) announced that it has exchanged contracts to sell 480 Queen Street, Brisbane for a gross sale price of $700 million, in which Dexus and Dexus Wholesale Property Fund (DWPF) each hold a 50% ownership interest. The net sale price of $657.3 million is in line with the independent valuation as at 30 June 2026, or a circa 4% discount to the book value at 31 December 2025. The asset is a Premium grade office building in the Brisbane CBD with occupancy by income of 89.7% and a weighted average lease expiry of 3.8 years as at 30 June 2026. The sale is subject to FIRB approval and is otherwise unconditional.

Of Dexus's 50% share, circa $259 million of the net sale price will be received on settlement, which is expected to occur on 1 December 2026, with the remaining $70 million deferred to 1 June 2028 at a 6.0% per annum coupon payable to Dexus. Sale proceeds would reduce Dexus's pro forma look-through gearing by circa 1 percentage point. Chief Executive Officer and Managing Director Ross Du Vernet said the transaction was a further demonstration of the company executing on its strategy and would release capital to assist in funding higher returning initiatives. Dexus and DWPF retain exposure to the premium Brisbane office market through their jointly owned Waterfront complex, where the existing One Eagle Street is 93.8% occupied and the North Tower of the development is 71% pre-leased.