A joint venture between an affiliate of Starwood Capital Group and Arrow Capital Partners has entered into an agreement for the recapitalization of a portfolio of office and industrial assets alongside Altis Property Partners.
Starwood said the recapitalization would allow further investment in the portfolio and provide liquidity for some investors.
The portfolio comprises 12 properties with a total value of over A$760m located across Sydney, Melbourne and Brisbane.
”The current strategy will continue to be leasing vacant space and expiring tenancies for long-term investment and value creation,” said the company in a statement.
“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,” said James Fogarty, Senior Vice President from Starwood.
“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,” said Kurt Wilkinson, Partner at Arrow Capital Partners.
Starwood and Arrow first invested in 2017 into St Leonards, where it recently achieved planning approval for a mixed use development of 57,000sqm.
Starwood and Arrow also owns the Zenith towers in Chatswood, which was acquired in 2019. This will take the value of the investments to over $1.5bn.