Blackstone Buys Sydney Office Towers for $1B

Blackstone’s headquarters in Midtown Manhattan

Blackstone has made a slightly more than $1 billion investment in Sydney, Australia’s CBD market with its acquisition of two towers from Scentre Group, a regional real estate investor that owns shopping centres in Australia and New Zealand. Funds managed by Blackstone paid A$1.52 billion (US$1.06 billion) for the properties at 100 Market St. and at 77 and 85 Castlereagh St.

The towers were developed by Scentre and delivered in 2011. The transaction price represents almost $800 million in additional value created and has generated an unlevered internal rate of return of over 16% per year for the company, according to Scentre Group CEO Peter Allen.