News: DXS UPDATE 1-Dexus sells Sydney office building at 16% discount for $188 mln

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Aug 18 (Reuters) - Australian real estate firm Dexus (DXS) said on Friday it would sell an office building in downtown Sydney for A$293.1 million ($187.73 million), representing a more than 16% discount to its Dec. 31 book value.

Reuters reported on Wednesday that the company had signed a conditional deal last month to sell the building, citing its annual report.

The property industry globally, and office building owners in particular, are struggling as home working and e-commerce lead tenants to reconsider floor space just as higher interest rates reduce building values and raise debt servicing costs.

Dexus' downtown Sydney building was independently valued at A$350 million in December 2022, according to company filings. The company will own a A$50 million stake in the trust that will hold the property, it said in a statement.

In June, the company also sold one of its premium office buildings in Sydney's central business district for A$393.1 million, a near 17% discount to an independent valuation made in December.

Dexus CEO Darren Steinberg said on Wednesday forced sales were off the cards because it had raised enough financing from banks and a recent note issue to fund its pipeline and would only sell assets to recycle cash into higher-yielding projects. ($1 = 1.5613 Australian dollars)