This article is from the Australian Property Journal archive
A RARE office building offering in a prime location in Parramatta’s CBD is expected to draw interest from both investors and owner occupiers.
The refurbished asset at 126 Church Street offers ground-floor retail, 12 floors of office space and a net lettable area of approximately 9,686 sqm, with basement parking for 54 vehicles.
Mixed Used 1 zoning provides future flexibility, and the building is suited to both whole-floor occupation while also being adaptable to multiple tenancies or alternative uses including residential, serviced apartment or hotel.
Parramatta’s office vacancy rate has jumped up to around 22%, according to the latest figures from the Property Council of Australia, having set close to zero on the eve of COVID. More recent increases have been mainly due to a large amount of supply coming online at Parramatta Square.
Colliers’ Harry Bui, who is marketing the asset with colleague John McCann, said there is an emergence of owner occupiers in the market “which we believe 126 Church St would suit due to the large amount of capex the current owners have spent on the asset”.
An owner occupier last year acquired the prominent Parramatta corner office building at 144 Marsden Street, of 2,584 sqm, for $18 million. That followed the City of Brisbane Investment Corporation divesting the 5,479 sqm 9 George Street building for $49.6 million. A local Parramatta investor secured the property, which had been refurbished in 2018.
Bui said 2023 saw low sale transaction volumes and was characterised by improving resilience in office market fundamentals, “unveiling complex layers of vacancy and rental growth profiles led by the shift in occupier preferences”.
“In 2024, we anticipate astute investors are returning including Asian private family offices, property syndicates to gravitate towards these outperforming pockets of Sydney metro office markets such as Parramatta, particular for assets that present a healthy return and opportunity to unlock further values.” Bui said.
“As such, assets like 126 Church Street, Parramatta, have been received extremely well by interested parties, largely due to its prime CBD location close to Parramatta railway station, bus interchanges and directly opposite Westfield Parramatta.”
McCann noted the NSW Government has made significant investments in infrastructure for the Parramatta CBD including the delivery of Sydney Metro West and the Parramatta light rail as well as sporting and cultural facilities.
The expressions of interest campaign 126 Church Street closes Thursday, 14th March.
