Connecticut based Starwood Capital, with New South Wales’ Arrow Capital Partners, have acquired The Zenith Centre in Sydney’s Chatswood, for $438.2 million.
Centuria and BlackRock repositioned the asset since that time – starting with a capital works program which included a foyer refurbishment, lift upgrades and improving end-of-trip facilities.
They then signed 58 leases, affecting more than 40,000 sqm of area, increasing the weighted-average-lease-expiry from 2.5 years to 4.3 years, and average rent from less than $500 per square metre, per annum, to nearly $700 per sqm/pa.
The 21-level A-grade buildings which form The Zenith Centre contain a total office area of about 44,000 sqm, and were offered for sale fully leased. Each tower also includes a five-level basement car park.
Chatswood is about 10 kilometres north of the Sydney CBD.
The Zenith Centre is the second Sydney investment Starwood Capital and Arrow will co-own. In late 2017, the investors paid close to $160 million for a seven level office at 29-57 Christie Street, St Leonards.