Blackstone Group LP and Investa Property Group entered separate agreements to respectively sell two Sydney buildings to Early Light International Group and PA Realty, a joint venture between CLSA Real Estate and Mitsubishi Estate Co. Ltd., The Australian reported.
Earlier in November, Blackstone was believed to be in discussions to divest its 22-level building at Sydney's 1 Castlereagh St. to Early Light, the world's largest toymaker. According to the Dec. 7 report, the pair has reached a deal worth more than A$220 million for the 11,500-square-meter property.
Purchased from Mirvac Group in 2014 for A$69.4 million, the Sydney asset is one of three Australian office properties that the U.S.-based private equity giant wanted to sell in August, which were tipped to bring in at least A$500 million. Since then, Blackstone called off the planned sale of the 80 Grenfell Street property in Adelaide, which it bought from Melbourne-based epc.Pacific. in 2016, along with the Rundle Place shopping center, for A$400 million.
Blackstone, together with the marketing agents for its property, CBRE and Cushman & Wakefield, declined to comment on the reported agreement, the paper noted.
Meanwhile, Investa Property's unlisted Investa Commercial Property Fund reportedly agreed to sell the grade B commercial building that it owns at 130 Pitt St., in Sydney, to PA Realty for A$229 million, representing an initial yield of 3.7% or a rate of roughly A$21,000 per square meter.
The deal's value surpassed the A$200 million price tag attached to the office-retail building when it was taken to the market in November. Marketed by Savills Australia and Inc RE, the asset has a total net lettable area of 10,098 square meters and is anchored by CMC Markets.