Starwood Capital Group & Arrow Capital Partners JV recapitalize properties located in Sydney, Melbourne and Brisbane with Altis Property Partners

Rhea-AI Summary

A joint venture between Starwood Capital Group and Arrow Capital Partners has entered a recapitalization agreement for a portfolio of office and industrial assets valued at over A$760m in Sydney, Melbourne, and Brisbane. This strategic move aims to increase investment in the portfolio and offer liquidity for investors. The joint venture, which includes Altis Property Partners, targets leasing vacant spaces for long-term value creation. Previous investments in St Leonards and Zenith towers have raised total investments to over $1.5bn.

Positive

• Recapitalization of a A$760m portfolio enhances investment opportunities.
• Location of assets in high-demand markets with limited supply.
• Total investment value now exceeds $1.5bn, reflecting growth potential.

Negative

• None.

MIAMI, Aug. 23, 2021 /PRNewswire/ -- A joint venture between an affiliate of Starwood Capital Group, a leading global investment firm, and Arrow Capital Partners, an investor and operator of real estate, announces they have entered into an agreement for the recapitalization of a portfolio of office and industrial assets alongside Altis Property Partners.  The recapitalization will 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.

James Fogarty, Senior Vice President from Starwood 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."

Kurt Wilkinson, Partner at Arrow Capital Partners said:
"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."

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.

About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $60 billion of capital, and currently has approximately $95 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $72 billion of capital since inception and manages a portfolio of over $19 billion across debt and equity investments. Over the past 29 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.

Media Contacts:
Tom Johnson / Dan Scorpio
Abernathy MacGregor Group
(212) 371-5999
tbj@abmac.com / dps@abmac.com

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SOURCE Starwood Capital Group

FAQ

What is the recapitalization agreement involving Starwood Capital Group and Arrow Capital Partners?

The recapitalization agreement is for a portfolio of office and industrial assets valued at over A$760m located in Sydney, Melbourne, and Brisbane, aimed at increasing investment and providing liquidity for investors.

How much is the total value of investments made by Starwood and Arrow in Australia?

The total value of investments made by Starwood and Arrow in Australia, including recent projects, now exceeds $1.5bn.

What strategy will be employed for the newly recapitalized portfolio?

The strategy involves leasing vacant spaces and renewing expiring tenancies for long-term investment and value creation.

Which cities are included in the Starwood and Arrow portfolio recapitalization?

The cities included in the recapitalization are Sydney, Melbourne, and Brisbane.