Blackstone selling Adelaide, Charter Hall buying Allianz tower

The battle begins for a prime A-grade office building in the heart of Adelaide.

During the week, US private equity and property manager Blackstone announced it is placing 80 Grenfell St, Adelaide SA on the market, one of Adelaide’s newest office buildings. Centuria and West Australian funds manager Primewest are expected to go head to head to acquire the office tower with price expectations of around $200M. Blackstone purchased the property as part of its $400M purchase of the Rundle Place shopping centre and tower in 2015.

Charter Hall Group (ASX: CHC) also looks set to acquire the remaining 50% ownership of Sydney’s Allianz tower. Major tenant Allianz has appointed JLL to sell its 50% stake in the 24-level A-grade building in Market Street, Sydney which is 100% occupied with major tenants Allianz, Caltex and Commonwealth Bank of Australia. CHC has pre-emptive rights to acquire the building which is valued at just under $600M. Charter Hall’s existing 50% ownership is held in its flagship Charter Hall Office Trust (CHOT).