SC Capital secures Parramatta Asset3 December 2019
SC Capital has emerged as the buyer of 2-10 Wentworth Street Parramatta following an on market campaign for a Centuria wholesale fund.
SC Capital has paid $105m for the 13 level A Grade asset. The property comprises
10,940sqm of NLA and 119 car spaces and is fully leased with a 6.2year WALE with 93% under lease to the NSW Government.
The sale is reported to have be made on a 5.6% yield and comes a week after Charter Hall announced the sale of 9 Wentworth Ave for $64.25M. Parramatta has seen an extraordinary level of activity in the last 6 months with just under $1.0bn in office transactions taking place, compared to just $230m in the first 6 months of 2019. The largest transaction was the Jessie Street Centre which sold to Brookfield for $420m in September.
The building, which has a 4.5 star rating, was developed in 1989 and refurbished in 2014. It is located on the north eastern corner of Wentworth and Parkes Streets in the core of the Parramatta CBD, in close proximity to Parramatta Railway Station and the Westfield Shopping Centre.
The Centuria 2 Wentworth Street Fund acquired the property in 2014 for $45.1M and upon completion of the sale will show an equity IRR of 25% over its 5 year term. Centuria noted that together with the sale of 8 Central Avenue, Australian Technology Park for $191m, the group has secured $25m in performance fees.
The sale was managed by Cushman & Wakefield and CI.