Australian property group Stockland has offloaded its Melbourne office tower Riverside Plaza in the western core of the central business district to Dexus Wholesale Property Fund (DWPF) for $201.5 million, Sydney Morning Herald reports. The building is 97 percent leased to blue chip tenants such as Sinclair Knight Merz, Australia and New Zealand Banking Group and Primus Telecommunications.
The sale is part of a plan of strategic divestments to finance the share buyback and maintain low levels of debt. Allowances for outstanding incentives amounting to $7.9 million will be paid to the buyer. The proceeds of $193.6 million indicate a premium of $11.6 million, or 6.4 percent. The deal, funded through prevailing DWPF debt facilities, will boost DWPF’s exposure to the Melbourne central business district.
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