Parramatta Council invests $65m on Office Space

The City of Parramatta has invested approximately $65m to acquire an A Grade Office in Wentworth Street, Parramatta.

9 Wentworth Street is a modern seven storey office building with six levels of office space, ground floor foyer, and basement parking for 91 cars.

The 7,651sqm building is fully leased, with the Commonwealth Govt (Dept of Home Affairs) occupying 62% of the total NLA along with a number of other tenants occupying the balance. The Department of Home Affairs will be vacating upon lease expiry in August 2023. The building has a net annual passing income of around $3,600,000, providing a 5.5% yield to the Council.

The property adjoins the Wentworth Street Car Park (also owned by the Council) and prepares the city for a major redevelopment of the combined sites in the long term. It is likely however that Council will look to occupy part of the space vacated by the Commonwealth in 2023.

The property is strategically positioned only minutes’ walk from Parramatta’s Rail and Bus Interchange, one of NSW’s largest retail centre’s Westfield Parramatta, Parramatta’s famous Eat Street, and the 240,000 sqm Parramatta Square commercial development which is transforming the precinct.

The property was sold by Mayrin Group who acquired the property from Charter Hall for $64.25m in 2019.

Acting on behalf of the vendor, Knight Frank’s Tyler Talbot and Dominic Ong handled the sale in conjunction with John McCann from Colliers.

The 1,627sqm property sits in a Mixed Use zone with a 6:1 FSR and whilst Mayrin Group are focused predominantly on residential projects, the Group did not pursue a residential scheme for the site prior to selling the property.

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About Warwick Petschack

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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