Turi Condon and Maurice Dunlevy | April 03, 2008
SYDNEY'S Schwartz Family Company is in the running to buy Allco's World Square stake.
The private group, Australia's sixth-largest hotel owner, confirmed yesterday it had made an undisclosed bid for a half share in the retail complex, comprised of a retail shopping centre, major office building and a carpark.
A spokesman said the group was unaware of the progress of its bid, but expected to hear by the end of the week. Sources close to the sale believe it will not be finalised until much later.
The offering is seen as a test of the market as the first distressed properties are marketed in the wake of the credit crisis.
Controlled by husband and wife Bela and Eve Schwartz, SFC already controls the Hotel Ibis at World Square. It also owns the Deepwater Plaza retail centre at Woy Woy on the NSW central coast, and the Fawkner Centre office complex on Melbourne's St Kilda Road.
Other suitors have not been revealed, but some of Australia's largest listed property trusts are likely to be out of the running for such assets because of their falling share prices and the rising cost of debt.
The Australian recently revealed that the $6.4 billion GPT Group was on the verge of buying Allco's stake in the shopping centre and carpark late last year, but the $100 million-plus deal was not completed.
GPT is believed to have offered about $105 million for a 50 per cent stake in the three-storey 16,560sqm of retail centre and 547 car spaces.
In addition to the retail/carpark, Allco has put its half share in the Ernst and Young and 50 Goulburn Street office complex up for sale.