Dexus has completed its $2 billion divestment program ahead of schedule, exchanging contracts for the sale of three wholly owned office properties for a combined gross price of $715 million. This achievement represents the successful execution of a strategic plan announced in 2024, demonstrating disciplined capital management by the company.
The three properties comprise 30-34 Hickson Road and 36 Hickson Road in Sydney’s CBD, along with 123 Albert Street in Brisbane’s CBD. The combined sale price of $715 million aligns with independent valuations as of 30 June 2026 and reflects approximately a 4% discount to combined book values at 31 December 2025. Settlement is expected in October 2026, subject to Foreign Investment Review Board (FIRB) approval. The transaction terms specify that Dexus will receive 67% of the sale price at settlement, with the remaining 33% deferred for 30 months and subject to a 6.25% per annum coupon.
The divestment delivers meaningful benefits to shareholders. CEO Ross Du Vernet noted that the sales demonstrate Dexus’s capacity to secure liquidity at pricing well above valuations implied by the current security price. More significantly, the transaction is expected to reduce the company’s pro forma look-through gearing by approximately 2 percentage points, strengthening the balance sheet and providing additional financial flexibility for future capital allocation and strategic initiatives.
The three assets reflect varied market conditions across the office sector. The 30-34 Hickson Road property is an A-grade Sydney CBD office building with 41% occupancy and a weighted average lease expiry of 0.7 years, creating near-term lease renewal requirements. The 36 Hickson Road heritage building has maintained stronger tenancy at 89% occupancy with a 1.1-year WALE. In contrast, the Brisbane asset at 123 Albert Street is a premium-grade property with superior occupancy at 96% and an extended 5.5-year WALE, suggesting more stable cash flow characteristics and lower refinancing risk.
Investors should monitor several key developments as the transaction progresses toward settlement. The timing and conditions of FIRB approval will be critical, as will the receipt of the initial 67% cash proceeds. The deferred payment structure, while providing the seller with a coupon-bearing hold for 30 months, creates a multi-year cash flow profile that will influence capital allocation strategy. The successful completion of this divestment program ahead of schedule reinforces management’s track record in capital management and positions the company for future strategic opportunities. This announcement has been classified as price sensitive and flagged as material to the market by the ASX.
View the full ASX announcement (PDF)
About Dexus Limited (ASX: DXS)
Dexus is a leading Australasian property investor, developer and manager operating a diversified real estate and infrastructure portfolio. The company manages a high-quality portfolio of office and industrial properties across Australia and New Zealand, alongside a substantial funds management business overseeing third-party capital. It operates as a major listed property trust (REIT) on the Australian Securities Exchange.
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