Charter Hall has struck a deal with Singapore sovereign wealth fund GIC to buy the Jessie Street Centre in Parramatta for more than $400 million.
The pair secured the A-grade office building from Canadian giant Brookfield, with the Parramatta CBD asset continuing Charter Hall’s 15-year partnership with GIC.
Brookfield, a long-term owner in Sydney’s second CBD, put the 15-level Parramatta building on the market in April this year.
Charter Hall managing director David Harrison said the tower purchase, which follows on from its half stake buy of John Holland’s Glasshouse building in Sydney’s Macquarie Park this week, adds to its Australian office platform of approximately $18 billion in property assets.
The 53,901sq m tower is 99.9 per cent occupied, predominantly leased to the Australian Taxation Office, AMP Services Limited and NSW government service tenancies.
GIC Real Estate’s chief executive Lee Kok Sun said he was confident the asset, which spans a 13,530sq m site and holds long-term development potential, would generate “resilient, income-driven returns”.
“Parramatta is expected to benefit from Sydney’s forecast population growth and planned infrastructure enhancements such as a new metro line to the Sydney CBD and a light rail link,” he said.
Property tycoon Lang Walker is busy on the $3.2 billion redevelopment of Parramatta Square city centre, previously named as “one of the largest commercial developments in the country”.
Parramatta council’s CBD proposal, first backed in 2015, plans to make the river city “Australia’s next great city” with aims to deliver an extra 15,900 homes by 2056.
While a draft planning proposal allows for high-rise buildings to increase in height, from 24 metres up to 80 metres, the council is due to discuss the CBD proposal again at its November meeting.