This article is from the Australian Property Journal archive
GPT has secured QBE as the anchor tenant for its $300 million 32 Smith Street office development in Parramatta, on a long-term deal that will see Australia’s largest global insurer have signage rights over the prime grade building.
The development is GPT’s first in the Parramatta office market, which boasts among the tightest A-grade vacancies in Australia. 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.
GPT added to its presence in Parramatta with the $277.6 million of the Eclipse Tower at 60 Station Street in August, and the strong market conditions have prompted major players in BlackRock, Charter Hall, Mirvac and Dexus to invest in Sydney’s second city, most recently joined by Singaporean companies Roxy-Pacific Holdings and Tong Eng Group.
QBE will take 51% of the 26,400 sqm tower at 32 Smith Street in a move that will consolidate its existing Parramatta operations and office in Sydney Olympic Park, agreeing to an initial term of 10 years.
“We are very pleased to provide QBE with contemporary, state-of-the art premises for their Western Sydney offices, and fulfil their needs for a premium quality workplace in an excellent location in the Central City of the Sydney region,” GPT head of office & logistics, Matthew Faddy said.
“We continue to see growth in commercial activity and significant infrastructure investment in the area, and we expect demand for office space will continue to grow.”
QBE Australia and New Zealand Chief Operating Officer, Renée Roberts, said the move would create a new Western Sydney hub for the insurer that will incorporate improved technology and modern workspace design that will encourage greater collaboration and efficiencies between teams.
GPT has appointed Richard Crookes Constructions as the building partner for the Fender Katsalidis-designed project. Completion is expected in 2020.
Australian Property Journal
