Blackstone has sold an office building in the central business district of Adelaide, South Australia, to Centuria Capital Group and MA Financial for A$166.6m (€108m).
Blackstone inherited the building when it took over Singapore-listed Soilbuild REIT in April. Soilbuild REIT acquired the building, at 25 Grenfell Street, from Credit Suisse in 2019 for A$134m.
Centuria and MA Financial would have equal stakes in the 24-storied building, with each contributing A$83.3m for their share.
MA Financial plans to split its stake between its two diversified real estate funds, MA SIV Property Fund and MA Diversified Property Fund.
MA Financial joint CEO, Julian Biggins said: “We believe there is a significant opportunity to enhance the building’s value and profile through active management, utilising the combined expertise of both firms.”
Jason Huljich, Centuria joint CEO, said Centuria’s half-stake in the Adelaide building would form a single-asset, unlisted fund to be launched in early 2022.
In addition to the Adelaide asset, Centuria also purchased a half-stake in a tomato farm at Warragul, Victoria, for A$88.5m on a leaseback basis, with the vendor, Flavorite Group, retaining 50% of the asset.
However, Huljich said Centuria had an obligation to acquire the remaining interest from Flavorite Group, on the same terms, within a six-month period. Centuria plans to establish a new fund vehicle, which will own the entire asset.
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