ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Blackstone Sells Half Share of Westpac Place for $800m

290c28c3-7dd8-41f4-96f8-de8035d656f0

Blackstone, the world’s largest real estate owner, is off-loading its 50 per cent share in Sydney’s Westpac headquarters in a transaction that is expected to yield more than $800 million.

Blackstone purchased half of Westpac Place from Mirvac in June 2014 for $435 million. That sale was at a premium to book value and reflected an initial passing yield of 6.72 per cent.

A sale of more than $800 million would return a yield of under five per cent, reflecting the strong prices being realised for Sydney office space.

Westpac Place at 275 Kent Street was completed in 2006 and designed by Johnson Pilton and Walker. It features 74,593 square meters of office space and 2,532 metres of retail. There are 214 car parking spaces.

[Related reading: Blackstone takes on $1.1 Billion Property Portfolio]

Blackstone declined to comment on the sale but is understood to have appointed Savills and JLL to handle the sale.

Mirvac and Blackstone as co-owners successfully renegotiated a long-term lease with Westpac commencing in November 2018 following the expiry of Westpac’s current lease, which would extend the bank’s commitment as majority tenant until 2030.

Last year Blackstone sold a tower at 1 Castlereagh Street for about $220 million. Blackstone refurbished that building and split floor plates in order to attract tenants.

It had put on the market in 2017 a collection of towers that included in addition to Castlereagh Street, 127 Creek Street in Brisbane and 80 Grenfell Street in Adelaide which Blackstone acquired as part of its purchase of Rundle Place shopping centre and adjacent tower for $400 million.

ADVERTISEMENT
TOP STORIES
CONTRIBUTE TO THE CONVERSATION
Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: https://theurbandeveloper.com/articles/blackstone-sells-half-share-of-westpac-place-for-800m-