Allens has advised a private fund managed by global investment manager BlackRock and Centuria Property Funds Limited (Centuria) on the sale of two office buildings in the Sydney suburb of Chatswood for around $440 million. The Zenith was purchased by Starwood Capital Group LLC in a joint venture with Arrow Capital Partners.
The sale is the largest amount ever paid in Australia for an office asset outside of the CBDs.
The Zenith is comprised of two 21-storey office towers and has a net lettable area of about 44,400 square metres and 785 parking spaces.
‘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,’ she said.
In 2016, Allens advised BlackRock and Centuria on their joint acquisition of the Centre.
‘Having previously advised on the acquisition of The Zenith in 2016, we were delighted to again assist BlackRock and Centuria on the asset’s sale,’ Victoria said.
Allens advised on all aspects of the sale. Contracts exchanged on 7 June 2019.