‘Record-breaking’ commercial property sale reaches completion
Allens has advised a private fund managed by BlackRock and Centuria Property Funds Limited on a “record-breaking” commercial property sale in Sydney’s north.
Firm: Allens (private fund managed by BlackRock and Centuria Property Funds Limited)
Deal: A private fund managed by BlackRock and Centuria Property Funds Limited has sold Chatswood-based “The Zenith” to Starwood Capital Group LLC in a joint venture with Arrow Capital Partners.
Value: $440 million
Area: Real Estate
Key players: The Allens team comprised partners Victoria Holthouse and Marc Kemp, senior associate Matti Bechler, managing associate Charles Ashton, associate Justine Gainsford and law graduate Tamar Ruiz.
Deal significance: The Zenith is comprised of two 21-storey office towers, holding a net lettable area of approximately 44,400 square metres as well as 785 parking spaces.
According to a statement from Allens, the sale of The Zenith represents the largest amount ever paid in Australia for an office asset located outside of the CBD.
“The sale of The Zenith for a record amount of around $440 million reflects a shift in Sydney’s office market with increasing investor appetite for locations outside of the CBD,” said lead partner Victoria Holthouse.
“Sydney’s office market is continuing to grow, yet vacancy rates remain low and supply in metro locations is limited.
“In this environment, we anticipate more investors will begin looking to suburbs such as Chatswood, in Sydney’s north, and Parramatta, in Sydney’s west.”
The sale of The Zenith comes after Allens advised BlackRock and Centuria on their joint acquisition of the Centre back in 2016.