Colliers and CBRE collected early indications of interest late last month and were expected to have had a number of groups in due diligence last week.
At 44 Market Street, Knight Frank and JLL are working to the same timeline. The 26-level tower, whose tenants include the Australian Bureau of Statistics, was being pitched with an 85.4 per cent occupancy and 2.7-year WALE. It had higher net passing income than its Barangaroo-end counterpart at $24.3 million. Sources said it had attracted interest from Singapore-based investors.
Sales closely watched
The two Dexus buildings are joined by Blackstone’s 85 Castlereagh Street, known to bankers as the JPMorgan Tower. They are expected to be worth several hundred million dollars but well short of the $1 billion mark.
Put together, the three buildings are the first significant office assets in the Sydney CBD to come up for sale in some time. The process is being closely watched for how far from the book values their sale prices land.
The vendors suggest there’s no reason why prime assets with good income profiles and long WALE should trade at 20 per cent-odd discounts implied by listed real estate investment trusts. The buyers, on the other hand, are likely to be opportunistic and push for lower valuations.