Dexus locks in Ashurst and raises guidance by 5% for FY20

Dexus locks in Ashurst and raises guidance by 5% for FY20

7 February 2020

Leading Australian law firm, Ashurst, has been secured as the newest customer to join a number of high calibre businesses at the South Tower currently under development at the 80 Collins Street precinct in Melbourne.

The South Tower is a new 38 level premium office tower and part of the 80 Collins precinct which also comprises an existing 47 level A-grade office tower, a new retail podium and a new boutique hotel. The precinct was acquired by Dexus and Dexus Wholesale Property Fund in May 2019 with the development of the South Tower being managed by the vendor with oversight and leasing undertaken by Dexus.

Ashurst has signed a lease for 10 years commencing in June 2021 across 4,427 square metres on levels 16,17,18 and part 19. Six new customers have been secured across 15,418 square metres, increasing leased space at the South Tower from 63% at acquisition to 97%, and leaving only one floor available to lease.

Melbourne’s record low Prime vacancy rate of 1.8% has supported Dexus securing leases on most of the development’s vacancy in only eight months of ownership, as well as setting new benchmark rents for Premium space in Melbourne.

Chris Hynes, Head of Leasing and Workplace – Office at Dexus, said: “We have a long-standing relationship with Ashurst, also a customer at 5 Martin Place in Sydney, and are delighted to be working alongside them once again to implement a new workspace in Melbourne’s newest premium office building.”

Ashurst Melbourne Office Managing Partner, Ross McClymont, said: “We are delighted to have signed the lease for our new home at 80 Collins Street, and are looking forward to welcoming our people and clients to this exciting next chapter in our long history as part of the Melbourne legal and business community, dating back to 1841. It is a space that will encourage interaction and collaborative work, while providing our clients with the best possible facilities in which to meet and work closely with our lawyers.”

The development of the South Tower topped out in August 2019 and is expected to complete in mid-2020.

The deal comes on the same day that Dexus announced its result for the half year and upgraded its guidance for distribution per security growth from circa 5% to circa 5.5% for FY20. 

Dexus Chief Executive Officer, Darren Steinberg said: “We continue to make significant progress towards our vision of being globally recognised as Australia’s leading real estate company.

“Urbanisation continues to drive demand for quality space in Australian cities and the growth in pension capital is increasingly chasing the favourable returns that real estate can offer.

“We are responding by remaining focused on enhancing the attractiveness of our properties, while leveraging our market intel and capabilities to create spaces where our customers want to be, while at the same time partnering with like-minded third party capital to invest alongside in our core markets.”


  • Net profit after tax of $994.2 million, up 36.9% primarily due to net revaluation gains of investment properties being higher than those recognised in the previous corresponding period
  • Underlying Funds From Operations1 (FFO) per security of 31.9 cents, up 1.9% on the previous corresponding period
  • Distribution per security of 27.0 cents, consistent with the previous corresponding period
  • NTA2 per security increased by 5.9% over the six-month period to $11.10 
  • Gearing (look-through)3 remains conservative at 25.5%
  • Successfully completed the issue of $200 million of Medium-Term Notes with a 10-year tenor and post 31 December 2019, completed a further $500 million issue of Medium-Term Notes with a 12-year tenor at an attractive all-in rate