Scentre have announced the sale of the three commercial assets surrounding their Sydney CBD flagship centre to Blackstone in a deal worth circa $1.52bn.
The three assets include;
- 100 Market Street – a 28,900sqm office tower which was completely refurbished in the 2010 redevelopment of the site. The building is now home to ASIC.
- 89 Castlereagh Street – a new 32,800sqm office tower which was built above the Westfield podium in 2012 is home to JP Morgan and Westfield. The building is one of the few successful buildings to incorporate a main entry on Level 5 with access via separate lobby lifts.
- 77 Castlereagh Street – a 15,200sqm office building partially refurbished in the 2010 redevelopment. It is understood that Blackstone will acquire the assets by way of a 299-year leasehold interest in the properties.
The transaction caps off a significant quarter of disposals for Westfield following the sale of 50% of Westfield Burwood to the Perron group last month for $575M.
Scentre will use the proceeds of the transaction to buyback $800 million worth of securities in an effort to increase its return on equity while maintaining a strong balance sheet.