The Blackstone-owned 151 Property Group has reaped a windfall of about $30 million from the $75 million sale of its B-grade office tower at 90 Arthur Street in North Sydney to Deutsche Wealth and Asset Management.
Blackstone last acquired the property in 2013 as part of a seven-asset bundle from seller GE Capital Real Estate for a total sum of about $380 million.
That sale included 18 St Georges Terrace in Perth and 127 Creek Street in Brisbane.
The 90 Arthur Street property was afterwards individually priced at $45.25 million, according to public records.
Last year, Blackstone’s Australian retail platform merged with Valad Property Group to form 151 Property Group, in which the 90 Arthur Street was held.
The 151 Property Group has, since 2013, undertaken $3.8 million in building refurbishments including new front and rear entry foyers and facade upgrades.
The property also has a showpiece top floor which has harbour views.
The 9257-square-metre building has a weighted average lease expiry of 3.08 years and is currently 91 per cent leased to 12 tenants including Veda and Serco, earning a passing annual rent income of $4.75 milllion.
Importantly, the property on a 1188sq m site has development upside and can be converted into serviced apartments or a hotel, under its current B3 zoning.
The building next to it, 80 Arthur Street has similar upsides and is currently being redeveloped into serviced apartments by apartment builder Meriton.
Knight Frank’s James Parry, Tyler Talbot and Neil Brookes handled the deal.
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