Property fund manager Capital Property Funds has offloaded an A-grade office building in Parramatta for $56.63 million to the world’s largest asset manager, BlackRock.
The 33-year-old commercial office tower was put on the market in July with a $50 million-plus asking price.
Capital Property Funds acquired the complex at 91 Phillip Street in 2013 for $30 million, undertaking refurbishments and converting car spaces into office space to capture growing tenant demand in Parramatta.
The KPMG building is located on 2,193sq m prominent corner site in Parramatta’s CBD and offers 6,094sq m of net leasable area.
The property hosts anchor tenant KPMG, flexible workspace provider Regus, Knight Frank and claims management company Cunningham Lindsey.
BlackRock’s head of Australia real estate Hamish MacDonald said the global fund manager is seeking out similar opportunities.
“We look forward to adding value to this building and meeting the needs of current and future tenants, while continuing to seek similar compelling opportunities for our long-term investors in Australia,” MacDonald said.
The sale was brokered by Cushman & Wakefield’s Steven Kearney and Mark Hansen in conjunction with Savills Australia’s Simon Fenn, Graeme Russell, Tim Grosmann and Ben Azar.
Parramatta’s office market is among the tightest in the country – prime grade vacancy in Parramatta is currently zero, with the total vacancy rate at 4.3 per cent.
“The fundamentals of the Parramatta market have never been stronger and development activity is moving ahead apace,” Capital Property Fund executive director Andrew Kerr said.
“This supported our recommendation to divest the 91 Phillip Street tower after receiving unsolicited approaches to acquire the property off-market and enabled a transaction in line with the fund’s strategy to deliver significant value for unit holders.”
Earlier this month, Capital Property Funds snapped up a 15-storey Brisbane office tower, ANL House, at 110 Eagle Street on an investment mandate.