The GPT Group has announced it has entered into a binding agreement with Dexus (DXS) and Dexus Wholesale Property Fund (DWPF) to sell its 50% share in Sydney’s MLC Centre for $800 million. Acquisition of the remaining interest provides Dexus with full management and operational control of this prime Sydney asset.

The asset has achieved an annualised return of in excess of 20% per annum over the past three years. The sale price of $800 million represents a 3% premium to GPT’s 31 December 2018 book value.

In announcing the sale, GPT’s Chief Executive Officer Bob Johnston said: “The sale capitalises on the significant repositioning of the asset over the past five years. The proceeds from the sale will be reinvested primarily into our development pipeline, which we believe will generate better long term returns for investors.”

The MLC Centre is a quality A-grade property comprising 66,900m2 of office space, 10,600m2 of retail space and 308 car spaces. A proposed ground floor retail development across 12,800m2 provides exposure to positive rental reversion and will add further amenity for occupants of the office tower (which represents more than 86% of current NLA).