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Starwood Capital spends big to acquire Sydney office complex
The purchase is Starwood’s largest Australian deal to date
Barry Sternlicht’s Starwood Capital has purchased an office complex in northern Sydney for $303 million, in partnership with Australian firm Arrow Capital Partners.
The complex was purchased from global asset manager BlackRock and Australia’s Centuria Property Funds, IPE Real Assets reported.
The companies acquired the complex in 2016 for A$279 million. They decided to sell earlier than planned because of buyer interest.
“These are A-plus buildings on a land-rich site,” Kurt Wilkinson, partner at Arrow Capital Partner, told IPE. “It has 8,000 square meters of landholding.”
In 2018, Starwood landed a $162.5 million loan from a Singapore bank for its hotel at 1414 Sixth Avenue, TRD reported.
The Sydney deal was Starwood’s single largest Australian purchase to date.
In its first quarter office market report, Cushman & Wakefield said Sydney’s Central Business District had a vacancy of just 4.6 percent, with net effective office rent rates at $1,030 a square meter. [IPE] — Sylvia Varnham O’Regan