NSW govt pays $332m for DEXUS properties

DEXUS will receive $332 million for its Martin Place office tower and Shopping Circle, which the NSW government wants to demolish for a new railway.

The NSW government will pay $332 million to compulsorily acquire and then demolish two of DEXUS properties in Martin Place to make way for the new Sydney Metro rail line.

DEXUS Property Group says the price is a significant premium to the $222.6 million book value, as of June 30, of the 39 Martin Place office tower and the Martin Place Shopping Circle leasehold it jointly owns with DEXUS Wholesale Property Fund.

The group says the proceeds, when the exchange settles later this year, will be used to pay down debt.