08 July 2021
UPDATED: MERCATUS PARTNERS AUSTRALIA’S DEXUS TO ACQUIRE A ONE-THIRD INTEREST IN SYDNEY COMMERCIAL PROPERTY
Photograph courtesy of Dexus
Mercatus Co-operative Limited (“Mercatus”) is pleased to announce that its joint venture with Australia’s Dexus, Mercatus Dexus Australia Partnership (“MDAP”), has signed a Sales and Purchase agreement to acquire a 33.3% interest in 1 Bligh Street, Sydney – an iconic premium-grade, 29-storey building located in Sydney’s Central Business District – for A$375 million.
This marks Mercatus’ first acquisition outside of Singapore and its first foray into Australia in partnership with Dexus, Australia’s largest owner and manager of office property. Mercatus, through its wholly owned subsidiary, owns a 90% stake in MDAP, while Dexus owns the remaining 10%. MDAP has settled on the acquisition on 8 July 2021. Dexus is the investment manager of the JV and will continue to be the property manager.
Ms Tan Ser Joo, Mercatus’ Chief Executive Officer said, “This acquisition is part of our strategy to diversify our portfolio and to generate sustainable long-term returns. We are honoured to be able to partner Dexus, one of Australia’s leading real estate groups, in our first direct real estate investment overseas.”
1 Bligh Street is 99.5% occupied with a weighted average lease expiry of 5.4 years as at 31 December 2020. Major tenants include Clayton Utz, Bloomberg Australia Pty Ltd and the Commonwealth of Australia.