Martin Place building costs Sydney metro $332m

Dexus has parted ways with an office tower and retail hub at 39 Martin Place in Sydney as the NSW Government’s compulsory acquisition of buildings for its metro rail project gathers pace.

The government will pay $332 million for the 20-level office tower and shopping circle, Dexus revealed on Monday, as it moves towards constructing the $10 billion transport system.

Metro project: Macquarie plans major development for Martin Place station

Dexus sold its 100% interest in the building – the former home of upmarket jeweller Tiffany and Co – as well as the leasehold interest in its retail component, Martin Place Shopping Circle.

The NSW Government has compulsorily acquired 39 Martin Place as part of the Metro rail project.

The price was an almost $110 million boost on the property’s June 30 book value.

The fully refurbished building has 20 floors of office space, six retail outlets and basement parking for 68 cars.

Dexus says it will use the proceeds from the sale to repay some of its current debt facilities.