This article is from the Australian Property Journal archive
US private investment firm Starwood Capital and Arrow Capital Partners have smashed the $1.5 billion milestone after joining forces to invest in a $760 million portfolio of offices and industrial assets alongside Altis Property Partners.
The JV has entered into an agreement to recapitalise the portfolio which comprises 12 properties located across Sydney, Melbourne and Brisbane.
The recapitalisation will allow further investment in the portfolio and provide liquidity for some investors. The current strategy will continue to be leasing vacant space and expiring tenancies for long-term investment and value creation.
Starwood senior vice president James Fogarty said Starwood Capital is pleased to be investing in this high-quality office and industrial portfolio.
“The assets are located in strategic markets with limited supply and sizable demand. This acquisition increases our already significant exposure to Australia which we plan to continue,” he said.
Arrow partner Kurt Wilkinson added; “Arrow is excited to expand on our investments with Starwood Capital, and to be working with the Altis management team to grow further the income and value of this portfolio.
“We have worked with Altis for many years and value their expertise as high quality operators.” Wilkinson said.
Arrow and Altis recently acquired two industrial and logistics investments for $101.6 million.
This portfolio transaction will increase the value of Starwood and Arrow’s investments in Australia to over $1.5 billion.
Starwood and Arrow first invested in 2017 into St Leonards, where it recently secured planning approval for a mixed use development of 57,000sqm. The JV also owns the Zenith towers in Chatswood, which was acquired in 2019.
Demand for commercial real estate, particularly industrial and logistics shows no signs of slowing. The I&L sector continues to be a hot ticket asset class for institutions which remain underweight to the sector.
This week Singapore’s Mapletree Logistics Trust acquired a cold storage facility for $43 million.
Earlier this month GPT confirmed it is in due diligence to buy Ascot Capital’s $800 million portfolio, whilst Goodman purchased a 125ha site in Melbourne’s west, whilst Charter Hall’s wholesale industrial and logistics fund acquired a portfolio of 25 cold storage and food distribution centres in a $270 million sale and leaseback deal with PFD Food Services in May, and South Australian property developer and investor 1835 Capital bought a cold storage facility in Adelaide’s west for $41.5 million from another Singapore-listed group, ARA Logos Logistics Trust in April.
