Australian Unity’s office fund will add 17-storeys to an approved 14-storey mixed-use building application in Parramatta following a decision from the Sydney Central City Planning Panel.
The new building will be constructed where a six-level carpark sits, behind Australian Unity’s existing 14-level office building tenanted by NSW state government on the same block.
The ASX-listed office fund is expected to build the 30-storey tower plus rooftop at 10 Valentine Avenue and will revalue their AOF property portfolio in line with their policy.
This application followed the completion of Australian Unity and Singapore-based Keppel Capital joint venture in January amid multiple off-market takeover bids from US funds giant Starwood Capital Group.
The ASX-listed REIT owns a diversified portfolio of nine office properties located across Australian metropolitan and CBD markets in Sydney, Adelaide, Melbourne, Brisbane and Canberra.
The site, also identified as lot 2 Valentine Avenue, was purchased by Australian Unity for $65.5 million in 2007, winning approval in 2017 for 14-storey building in place of the carpark.
The latest plans costing $75 million would bring the proposed commercial floorspace from 8,000sq m to 28,000sq m by amending the Parramatta Local Environmental Plan.
AOF fund manager James Freeman said they were successful in increasing the floor-space-ratio for the site from 6.1:1 to 13.25:1 and the height limit applicable to the site.
“This was an important milestone for AOF that the team have been working on with the aim of crystallising value for investors,” Freeman said.
The development designed by Fitzpatrick and Partners and managed by Investa is situated alongside the Western train line and connects to Parramatta station.