Starwood Capital Group and Arrow Capital Partners JV acquire Altis AREEP3 assets

Altis joined Starwood Capital Group and Arrow Capital Partners JV in recapitalising properties in Sydney, Melbourne and Brisbane. 

Altis is pleased to announce the 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. 

This recapitalisation agreement of a portfolio of office and industrial assets has been entered alongside Altis Property Partners. 

This recapitalisation 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.

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 own the Zenith towers in Chatswood, acquired in 2019. This will take the value of the investments to over $1.5bn.

Altis Property Partners will continue as Asset Managers on those properties within the AREEP3 portfolio.

Photo: The Altis / Arrow Team from the Commercial Showcase Event.