BGO Buying North Sydney Office Building From Dexus for $395M

Fund manager BGO has agreed to acquire an office tower in North Sydney from Australian property giant Dexus and a Dexus-managed vehicle in a deal valuing the property at A$558 million ($394.7 million).

The transaction of 100 Mount Street was disclosed in six-month results released Wednesday by Dexus, which said the group was selling its 50 percent balance-sheet interest for A$279 million. The 35-storey tower comprises 42,000 square metres (452,084 square feet) of net lettable area and hit the market last October in a campaign run by CBRE and Cushman & Wakefield.

US-based BGO, the real estate unit of Canadian insurer Sun Life, is making its bet on Sydney’s secondary office hub with help from local investment managers Cliffbrook Capital and Investa, with the latter revealing the buyer in a Wednesday statement. Investa chief investment officer Adam Crowe pointed to the 2019-built tower’s “outstanding connectivity” — including metro, heavy rail and bus interchange access — as a draw for tenants.

“With customer demand for premium-grade offices continuing to build and supply constrained for the foreseeable future, 100 Mount Street is exceptionally well positioned for its next chapter,” Crowe said.

Market Surge

The news comes amid an upswing in Australia office deals, with transaction volume leaping 122 percent year-on-year in 2025’s fourth quarter to A$4.7 billion as investors returned to the once-dominant asset class, according to MSCI’s latest Capital Trends report.

Buyers took advantage of still-reduced pricing to lift annual office volume to A$12.2 billion, up 31 percent from 2024 and the strongest year for the segment since 2022, the data provider said.

The agreed price for 100 Mount Street values the property at A$13,286 ($9,372) per square metre of net lettable area. BGO declined to comment when contacted Thursday.

Under the terms of the deal, 75 percent of the sale price is to be transferred in June 2026 and the remaining 25 percent in December 2027, according to a results presentation by Dexus. The transaction remains subject to regulatory approval.

ASX-listed Dexus on Wednesday said the disposal was part of A$800 million in agreed or settled balance-sheet divestments during the most recent half, as the group continues to work towards its A$2 billion divestment target through fiscal 2027.

For BGO, which did business as BentallGreenOak until a 2024 rebrand, the buy continues a string of Down Under deals, including last year’s acquisition of three Sydney warehouses for A$201 million through a joint venture with Centuria Capital.

2025 also saw BGO clinch the purchase of 10-20 Bond Street, a 31-storey tower in Sydney’s central business district, from Mirvac and Morgan Stanley Real ­Estate Investing for a reported A$580 million, with Investa performing investment management and property management duties for the complex.

Soilbuild’s Bet

Some 300 metres (328 yards) to the west of 100 Mount Street, Singapore developer Soilbuild has acquired a 25 percent stake in the office property known as Coca-Cola Place from M&G Real Estate for A$90.7 million, according to a Wednesday notice by legal advisor K&L Gates.

The 21-storey building at 40 Mount Street comprises 28,340 square metres of floor area, with the remaining 75 percent interest held by Investa’s ICPF commercial property fund. The tower has served as the Australian headquarters of Coca-Cola since completion in 2010 with CBRE having acted as exclusive marketing agent for the property.

The transaction values the North Sydney office block at A$362.8 million, or A$12,802 per square metre. Soilbuild and M&G did not respond to requests for comment on Thursday.