Dexus has also entered into an agreement to acquire the adjoining property at 52 Collins Street for $70 million.

The company proposes to consolidate the two sites across 2,000 sqm, in the meantime activate a Prime grade office development to create a total of 35,000 sqm, subject to approval.

Dexus CEO, Darren Steinberg says these acquisitions will "provide them with a presence in the tightly held 'Paris end' of Collins Street".

"They also present us with a unique opportunity to undertake an office development creating long-term value for investors in the next supply cycle, in a prime location where we receive significant enquiry from our customer base.”

Dexus Executive General Manager, Office, and Industrial, Kevin George told WILLIAMS MEDIA, “There is no better site in Collins Street to deliver the latest generation of office space in the next supply cycle. We expect office demand in Melbourne to remain strong, with the vacancy rate to fall below 4 per cent next year and remain well below long-term averages for the foreseeable future.”

With a strong track record in developing world-class office buildings, Dexus has a number of projects currently under construction including 100 Mount Street in North Sydney, to be completed in early 2019 and 180 Flinders Street, Melbourne, to be completed in mid-2020.

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