Perhaps echoing their name, the twin Zenith towers of Chatswood have set a new record price for commercial property.
Scott Gray-Spencer and Michael Andrews of CBRE Sydney and Tyler Talbot and Ben Schubert of Knight Frank Sydney arranged the sale at $438.2 million. The vendors were BlackRock Inc, a US-based global investment management company with a portfolio valued at over US$6.29 trillion and Centuria Group’s Centuria Zenith Fund.
The purchaser was Evolution MIT Services Pty Ltd on behalf of Arrow Capital Partners and Starwood Capital. Arrow Capital Partners is a private real estate company which invests in equity and debt opportunities in the Asia-Pacific and European markets. Starwood Capital is a private investment firm with its primary focus being global real estate. The pair partnered before with the $160 million purchase of the Charter Grove Complex in St Leonards in 2017.
The Zenith Centre comprises twin-tower, A-grade, 21-storey office towers. The complex was completed in 1987 and includes the Zenith Theatre, a 250-seat community theatre. The two towers are connected by a pavilion which was built in 1991 and there are five levels of basement parking for 818 vehicles. The towers are fully leased to strong tenants including Lend Lease, Michael Page International, McCabe Curwood and the NSW and Federal Government.
With an income of about $27 million the sale represented a yield of about 6.2%. The buildings last traded together three years ago at $279.1 million.