Dexus (ASX:DXS) is drawing increasing buyout interest, with rivals, including New York Stock Exchange-listed private equity firm KKR, exploring acquisition opportunities following asset manager Blackstone's initial interest, according to a Sunday report by The Australian, citing unnamed sources.

Rising pressure for workers to return to offices and expected interest rate cuts have sparked investor interest, especially with office landlords in Australia trading at a 30% discount to asset values, per the report.

With its prime portfolio of office towers, infrastructure assets, and a substantial fund management platform, Dexus is valued at AU$8 billion, but potential offers could exceed AU$10 billion, the report added.

KKR's potential bid would mark its first major move into the Australian market. Some believe Dexus' board will only accept an offer reflecting the company's net tangible assets, the report said.

Dexus and KKR did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)