THE MILL SELLS FOR $110 MILLION
Written on the 10 November 2016
DEXUS Property Group (ASX: DXS) has acquired Sydney's The Mill for $110.2 million.
The property comprises of 10 refurbished historic buildings, providing 17,579sqm of warehouse-style office and retail spaces, and car parking, on a 1.9 hectare site, located in Alexandria, close to the CBD, airport and Green Square railway station.
Tenants include BlueScope Steel, Genesis HealthCare, Seafolly, Bendon, Under Armour, Mavi, carsales.com.au, and The Grounds of Alexandria - a popular food and beverage operator, which attracts 15,000-20,000 each week.
The property is 83 per cent occupied, with a weighted average lease expiry of five years.
Ross Du Vernet, Dexus chief investment officer, says The Mill provides Dexus with a significant landholding in a prime South Sydney location, where tenant demand is expected to remain strong.
"The property is well positioned to benefit from a combination of our active management of underutilised space and we expect to achieve rental growth, driven by withdrawals of nearby existing traditional office and warehouse properties," he says.
Settlement is expected in January 2017.
Dexus is trading down 2.79 per cent today, at $8.71 per share early this afternoon.