Grosvenor Group’s Indirect Investment business (Grosvenor) has successfully exited two investments; one in partnership with Propertylink in Australia and a second with High Street in the USA.
In July, Propertylink completed on the sale of 320 Pitt Street, a 30,000sqm office building in central Sydney, for A$275m. The 32 floor asset was acquired for A$200m in July 2015 in a three-way partnership between Propertylink, Grosvenor and Goldman Sachs. The sale delivered a net IRR to Grosvenor Group of 30% pa, significantly exceeding the target rate, demonstrating the success of Propertylink’s investment strategy and local knowledge.
Via the Indirect Investment business, Grosvenor remains invested in the Sydney office market through a partnership with Propertylink that holds offices in the North Ryde district.
In June the Indirect Investment business also exited a Fund investment with the US industrial and logistics fund manager High Street. The entire Fund portfolio was acquired by Blackstone and generated a net-net return of 15% pa over a five year period for Grosvenor. The Fund was the first of three partnerships between Grosvenor and High Street. We continue our joint venture on a portfolio of US logistics assets and an investment in High Street’s fifth Fund.
Commenting on the deals, Chris Taite, Managing Director, Indirect Investment, said:
“The success of these investments demonstrates the importance of working with specialist partners and is evidence of Grosvenor’s ability to move quickly and take advantage of well-timed opportunities. We look forward to working with Propertylink and High Street on both our existing commitments and new opportunities as they arise.”
To date, the Indirect Investment team has committed £260m of equity in 15, with ten specialist third-party managers internationally. This includes IO Asset Management in the UK, Alden Street Capital in the US and RMB Westport in sub-Saharan Africa.
For more information contact:
Sorrel Basher, Group Press Office
020 7312 7001
Notes to Editors
Grosvenor Group’s Indirect Investment business helps diversify the Group’s international property portfolio to achieve strong, risk-adjusted returns. This is achieved by investing Group capital in sectors, countries, investment types and management teams which complement the activities of the Group’s regional Operating Companies. We believe that working with managers who share our ‘Living cities’ philosophy and embrace innovation, sustainability and efficiency will deliver the best returns for Grosvenor, our partners and the communities that we invest in.
Since 2012, Indirect Investment has committed £260m in 15 deals, on five continents, with 10 specialist partners.