This article is from the Australian Property Journal archive
PARRAMATTA’S office market has attracted more heavy hitters, with Singaporean companies Roxy-Pacific Holdings and Tong Eng Group combining to buy 33 Argyle Street from the New South Wales Aboriginal Land Council.
The JV have paid $40.8 million for the 10-level building through their TE2 Roxy vehicle, 40% of which is held by Roxy-Pacific and 60% by Tong Eng, and was used one year ago to acquire the 312 St Kilda Road office tower on Melbourne’s city fringe for more than $74 million from Myer Family Investment.
Tong Eng Group’s involvement in the joint venture is through managing director Teo Tong Lim.
The property is on a 2,048 sqm site has a net lettable area of 5,279 sqm, comprising ground floor retail, three levels of above-ground parking and six upper office levels.
NSWALC, which picked up the building in 1992, will continue operating their head office from the building as part of a leaseback agreement. The proceeds will go to its Statutory Account.
TE2 is eyeing off the future development potential of the site, and follows investment in the commercial real estate market of Sydney’s second Sydney from major players GPT, Charter Hall, Mirvac, and Dexus, while BlackRock has just acquired the A-grade KPMG building at 91 Phillip Street for $57 million.
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 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.
Meanwhile, Walker Corporation 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
