GE Capital close to $1.5b asset sale
The group has confirmed it is well into the sale process and is talking to several interested parties.
While it does not comment on market speculation, GE Capital has been selling up to seven key properties across the country since September last year.
The main assets include 60 Carrington Street, 37-51 Pitt Street, 210-220 George Street and 99 Walker Street in Sydney, 90 Collins Street and 636 St Kilda Road in Melbourne, and Allendale Square in Perth.
It was suggested by agents that the group had signed a deal with US investor Blackstone, but these reports have been denied by GE Capital.
However, agents believe a deal is close and that the bulk of the sales process and negotiations are being run by GE Capital's US head office and its Australian real estate office managed by Jason Kougellis.
There was also talk that Mirvac and possibly Dexus were looking at some of the GE properties, while the larger groups, including Blackstone and Asian investor Pacific Alliance, were understood to be interested in the entire portfolio.
Given the time taken to reach an agreement, there have also been suggestions the portfolio could be split into two tranches to cater for local and overseas appetite.
Blackstone already has a strong presence in Australia.
Frequently Asked Questions about this Article…
GE Capital is selling Australian and New Zealand property assets — a program of up to seven key commercial properties — and expects to raise up to $1.5 billion. The group says it will use the cash raised from the sale to build its lending business.
GE Capital could raise up to $1.5 billion from the sale of its Australian and New Zealand property assets, according to the company’s estimates reported in the article.
The main Australian assets mentioned are 60 Carrington Street, 37–51 Pitt Street, 210–220 George Street and 99 Walker Street in Sydney; 90 Collins Street and 636 St Kilda Road in Melbourne; and Allendale Square in Perth.
No buyer has been confirmed. Although agents suggested a deal with US investor Blackstone, GE Capital denied those reports. The group says it is well into the sale process and is talking to several interested parties.
Yes — agents and market commentary in the article indicate interest from large groups. Blackstone and Asian investor Pacific Alliance were understood to be interested in the whole portfolio, while Mirvac and possibly Dexus were reportedly looking at some of the individual GE properties. None of these interests were confirmed as signed deals in the article.
Agents believe the bulk of the sales process and negotiations are being run by GE Capital’s US head office together with its Australian real estate office, which is managed by Jason Kougellis.
Yes. The article notes suggestions the portfolio could be split into two tranches. The idea is that splitting the assets could cater to both local and overseas investor appetite given the time taken to reach an agreement on the full portfolio.
The company has confirmed it is well into the sale process and has been selling up to seven key properties since September of the previous year. While agents say a deal may be close, GE Capital has not announced a completed sale and continues to talk to several interested parties.
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