This article is from the Australian Property Journal archive
THE City of Parramatta Council has given the green light for Australian Unity Office Fund’s 28,000 sqm Valentine Ave office building development in Sydney’s second city.
AOF lodged a draft application to increase the floor space ratio and maximum height limit for the 2 Valentine Ave site, having previously received gateway determination from the Department of Planning & Environment for an 8,000 sqm building.
The 2 Valentine Ave site is on the same title as AOF’s existing property at 10 Valentine Ave.
Parrmatta Council has endorsed the site specific planning proposal and will now complete their report and send it to the NSW Department of Planning, Industry and Environment for finalisation.
Commencement of the development will be subject to tenant pre-commitment, appointing a builder and finance approval.
According to the Property Council, Parramatta’s office vacancy rate stands at 2.7%, tighter than the ultra competitive Sydney CBD at 3.7%.
By the end of 2020 more than 136,000 sqm is expected of newly constructed office space will come online, with a substantial component of this space already pre-committed.
Over the summer, Walker Corporation received approval to develop the two remaining commercial buildings within its $3.2 billion three-hectare Parramatta project, including its repositioned hotel and residential Aspire Tower, which will add a combined 125,000 sqm of space to the suburb’s booming office market. Towers 3 and 4 on the site are fully pre-committed and are under construction.
Around the same time, GPT secured QBE as the anchor tenant for its $300 million 32 Smith Street development, and offloaded its $800 million share of the MLC Centre in the Sydney CBD in part to fund its Parramatta presence.
Singaporean companies Roxy-Pacific Holdings and Tong Eng Group combined to pick up the 33 Argyle Street building for $40.8 million, with an eye to the site’s development potential. Dexus has received approval for a 33-storey office tower at 140 George Street, and Scentre Group has plans for a 100,000 sqm tower of 40 levels above the existing shopping centre.
Dyldam’s 62-storey apartment building at 87 Church Street is set to be the city’s tallest residential tower, and comprise up to 450 apartments.
AOF has entered into a scheme implementation agreement with suitors Charter Hall and Abacus Property Group for their $495 million takeover of the fund. Shareholders will vote on the takeover on 7th November in Melbourne.
AOF has a total portfolio value of $668.4 million, and announced a $44.8 million annual profit, down mostly due to lower valuations, while funds from operations rose to $28.2 million.
