GE to cash in and lend out
The group has confirmed it is well into the sale process and is talking to several parties.
While it will not comment on speculation, GE Capital has been selling up to seven key properties since September.
Among the assets are 90 Collins Street and 636 St Kilda Road.
Agents suggested the group had signed a deal with US investor Blackstone - but GE Capital denied these reports.
However, agents believe a deal is close and the bulk of the sales process and negotiations are being run by GE Capital's US head office and its Australian real estate office.
There was speculation Mirvac and possibly Dexus were looking at some of the properties, while larger groups, including Blackstone and Asian investor Pacific Alliance, are believed to be interested in the entire portfolio.
Given the time taken to reach an agreement, there also have been suggestions the portfolio could be split into two tranches to cater for local and overseas appetite.
Blackstone, which raised $US13.3 billion in November, has made little secret of wanting to expand its global property portfolio. It already has a strong presence in Australia through Valad Property.
Frequently Asked Questions about this Article…
GE plans to use cash raised from the sale — up to $1.5 billion — to build and expand its lending business, according to the article.
GE Capital has been selling up to seven key properties since September, including notable assets named in the article such as 90 Collins Street and 636 St Kilda Road.
The group is reported to be well into the sale process and talking to several parties, with the bulk of the sales process and negotiations being run by GE Capital’s US head office together with its Australian real estate office.
Agents suggested a deal with US investor Blackstone, but GE Capital denied reports of a signed deal. Agents still believe a deal may be close and that several buyers are interested.
The article mentions local groups such as Mirvac and possibly Dexus being linked to some properties, while larger buyers including Blackstone and Asian investor Pacific Alliance are believed to be interested in the entire portfolio.
Yes — the article notes suggestions the portfolio could be split into two tranches to cater separately to local and overseas buyer appetite, given the time taken to reach agreement on a single sale.
Blackstone is believed to be interested because it has publicly looked to expand its global property portfolio; the article also notes Blackstone raised US$13.3 billion in November and already has a strong presence in Australia through Valad Property.
In plain terms: GE is selling up to seven Australian and New Zealand properties (including 90 Collins Street and 636 St Kilda Road) to raise as much as $1.5 billion to grow its lending business. Multiple buyers — both local (Mirvac, Dexus) and international (Blackstone, Pacific Alliance) — are reported to be interested, and the portfolio might be sold in parts to meet different buyer preferences.
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