BlackRock Real Estate, on behalf of a private fund it manages, has completed of the acquisition of The Zenith, an institutional grade office asset in Chatswood, Sydney.
The Zenith is a co-investment by the BlackRock-managed private fund and the Centuria Zenith Fund, an unlisted property fund managed by Centuria Property Funds Limited, at a purchase price of over A$279 million.
The Zenith is a landmark office asset with a diversified tenant mix. It is currently 94% occupied, with 40% of its rental income underpinned by government tenants. The property has approximately 44,000 sqm of net lettable area, with 800 car spaces occupying an 8,000-sqm site. It is located in Chatswood, a vibrant office, retail and residential precinct and the North Shore's major rail and bus hub. The new Sydney Metro rail infrastructure will further improve accessibility and make this location increasingly attractive.
Hamish MacDonald, Director of BlackRock Real Estate in Australia, said, “The excellent location of this asset and the favourable office market dynamics in Sydney make The Zenith an appealing risk-adjusted investment opportunity. We look forward to adding value to this property to meet the needs of current and future tenants, while continuing to seek similar opportunities across the market.”
One of the most recognisable structures in the area, the architectural design of the twin towers is spectacular.
Chatswood is one of the North Shore's major commercial and retail districts. It is an especially popular location for IT and telecoms companies with many Australian and multinational companies keeping offices there.
There are panoramic views of the Ku-ring-gai National Park and the northern beaches from the centre's 20th floor offices. The centre is around 11 km north of Sydney's central business district.