Longbow Enterprises has sold a part interest in 110 George Street, Parramatta in an off-market transaction just prior to Christmas. The Hong Kong group acquired the seven-storey commercial building in George Street, known as the Octagon, for about for about $83 million in 2014 and is said to be worth closer to $200m today given the development poetntial of the site.
Longbow sold a stake to RF CorVal, for its new Value Active Fund 2. Pricing for the transaction was undisclosed. Terraform (acting for Longbow) and RF CorVal will jointly manage the property, with a repositioning likely in future.
The property comprises a 21,082sqm A-Grade office building with 314 car bays and is effectively fully leased. The major tenants include the NSW government, Michael Page, and TAFE NSW, with most leases expiring in mid-2023.
The buildings sit on a 7,097sqm block in an area undergoing significant transformation bolstered by projects including the Parramatta Light Rail, Metro West and the new Powerhouse Museum. In March 2019, GPT launched the construction of its $300 million-plus tower in Smith St, with the project slated to come online before new towers proposed by Dexus, Mirvac, Australian Unity, Scentre and a raft of private groups.
The deal was brokered by the Cushman & Wakefield.
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