Starwood Capital and Arrow Capital Partners spend $438.2 million on Chatswood’s Zenith Centre
Connecticut based Starwood Capital, with New South Wales’ Arrow Capital Partners, have acquired The Zenith Centre in Sydney’s Chatswood, for $438.2 million.
The twin tower office complex at 821 Pacific Highway was sold by Centuria Capital and BlackRock which paid Dexus and GPT $279.1 million for it in 2016.
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.
CBRE’s Michael Andrews and Scott Gray-Spencer with Knight Frank’s Tyler Talbot and Ben Schubert marketed The Zenith Centre for Centuria and BlackRock.
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.
