Singapore state-owned investor GIC and Australian property investor Dexus have set up a joint venture to acquire a 50 per cent stake in Rialto Towers, located in Melbourne, Australia, for A$644 million ($387.5 million).
GIC will hold 90 per cent of the joint venture, while Dexus will hold 10 per cent, the Australian company said in a filing to ASX Monday.
Rialto Towers is a 55-storey building located in Melbourne’s central business district, with good access to transportation links and a nearly 92 per cent occupancy rate, the filing said. The deal is expected to be completed in May.
The seller is Kuwait-based St Martin’s Properties, Dexus said.
Dexus, which will fund its portion of the deal with existing debt facilities, will act as the investment manager of the joint venture, and as the manager of the entire Rialto Towers complex.
“We are pleased to continue to grow our relationship with GIC, enabling them to extend their investments into the Australian office market,” Darren Steinberg, CEO of Dexus, said in the stock exchange filing.
“In the current environment, we are focused on business continuity, and pleasingly were able to close this off-market transaction within our targeted timeframes,” he added.
Dexus told DealStreetAsia in an email that the inspections required for due diligence were completed before travel restrictions were imposed due to the COVID-19 outbreak, while the rest of the due diligence was completed virtually. GIC declined to comment.
COVID-19 has infected around 1.13 million people globally, with nearly 63,000 deaths, according to World Health Organization data Sunday.
The deal follows GIC making an additional investment in the Dexus Australian Logistics Trust (DALT) for A$366.1 million announced earlier this month.
Last week, GIC completed the acquisition of an additional 24 per cent stake, raising its holding of the trust to 49 per cent. DALT is an open-end unlisted trust holding assets from Dexus’ industrial portfolio and development landbank; it has an active acquisition and development mandate.
Dexus said it would use the proceeds of selling the DALT stake to strengthen its capital position.