Parramatta Eat Street Building sells at 3.7% yield19 January 2020
A 2 storey building on the corner of Church Street and Phillip Street Parramatta has sold to a Korean investor for $15.6m.
The asset is within the "eat street" precinct and contains 8 tenancies across a 1,001 sqm of NLA. The property generates $ 754,390 pa in gross income. The purchase price reflects a yield of 3.7%.
The property was sold by Ray White Commercial Western Sydney.
The property was sold just as work is scheduled to begin on the Parramatta Light Rail which will connect Westmead to Carlingford via the Parramatta CBD and Camellia. The works include converting Church Street Eat Street precinct to a pedestrian & light rail only precinct. The Government is anxious not to repeat the mistakes it made in the Sydney CBD light rail construction which decimated trade for businesses along the route.
As part of this commitment a construction ‘grace period’ will be observed each year on Eat Street meaning that during the warmer months from November 1 until January 31, construction hoardings will be removed, temporary outdoor tables and seating will be introduced, and Transport for NSW will work with local businesses to deliver activities and events that will attract people to the Parramatta CBD.
The prospect of declining trade and tenant disruptions may have been a factor for the vendor, however upon completion of the light rail in 2026, the eat street precinct will become a more strategic food & beverage destination for Western Sydney.