This article is from the Australian Property Journal archive
BLACKROCK has secured a foothold in the hot Parramatta office market, paying $57 million for the A-grade KPMG building at 91 Phillip Street.
The vendor, an unlisted trust overseen by Capital Property Funds, paid $30 million for the property three years ago before upgrading the 6,094 sqm tower, which sits on a corner site of 2,193 sqm.
Recent Colliers research has Parramatta’s overall office vacancy at 3.2%, the lowest in Sydney, driven by rising net absorption, limited stock and strong leasing markets.
The conditions have prompted major players in GPT, Charter Hall, Mirvac and Dexus to invest in Sydney’s second city in a bid to capitalise on its booming office market.
GPT made a second play in the city in August with the $277.6 million acquisition of the Eclipse Tower at 60 Station Street, while 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.
Walker Corporation, meanwhile, decided to reposition its future hotel and residential Aspire Tower at 8 Parramatta Square to a commercial building with a combined lettable area of 122,000 sqm.
Australian Property Journal
