This article is from the Australian Property Journal archive
GROWTHPOINT Properties Australia has locked away the New South Wales Police Force at its Curtis Cheng Centre in Parramatta for 25 years, and will spend $44 million enhancing the headquarters.
NSWPF occupy 32,356 sqm within the A grade building at 1 Charles St, which has 444 car spaces, and the directly negotiated lease will replace the current deal that was due to expire in May 2024.
Under the new lease, the commencing annual rent will be about $21.1 million excluding GST, and which will increase by 3.5% each year.
The force is Growthpoint’s largest tenant and about 8% of its income is derived from their lease. The new deal will increase Growthpoint’s pro forma portfolio weighted average lease expiry from 4.9 years as at 30th September to 6.5 years.
The property’s value is expected to increase 19% from its June 2019 book value to $420 million, and 74% higher than its June 2014 purchase price of $241 million.
Timothy Collyer, Growthpoint’s managing director, said the outlook for Parramatta remains positive, and “we are pleased to have consolidated our position in this growing market”.
Sydney’s metropolitan office markets had a very strong 2019, according to JLL, with 113,800 sqm of net absorption recorded across nine monitored markets, led by Parramatta with 46,900 sqm.
Growthpoint has also entered into a refurbishment works deed with NSWPF and expects to fund $44 million of works upgrading the offices, which the NSWPF plan to undertake over the next few years.
Works may include a new office fit out, and the upgrading of existing bathrooms and base building services.
