Charter Hall Group announced that its managed Prime Office Fund (CPOF) and Direct Office Fund (DOF) have purchased 105 Phillip Street, Parramatta, NSW for $229 million.
Located within the Parramatta CBD, 105 Phillip Street is centrally positioned within walking distance to the Parramatta Transport interchange, Parramatta Ferry and major retail amenity.
On completion in mid-2018 the office space will be 100% leased for 12 years to the NSW State Government’s Department of Education with fixed annual rent reviews.
Charter Hall Group Executive Adrian Taylor said the market was extremely competitive for high quality long WALE investment assets, particularly leased to blue chip tenants.
"We see this investment, which extends our relationship with the NSW Government as a tenant customer, as an exciting opportunity to create another landmark office tower in Parramatta CBD, which will benefit from significant infrastructure upgrades and which is proving to be increasingly attractive to tenant customers.”
Upon completion, the Bates Smart designed property will comprise a new A-Grade commercial office building, with a total NLA of 25,228 square metres.
The building will comprise basement car parking, end of trip facilities, retail accommodation (one retail tenancy), and office accommodation over 12 levels plus a mezzanine level. Built Pty Ltd will construct the new asset which will exhibit strong environmental credentials with a 5 star NABERS Energy and a 4 Star NABERS Water rating as well as a 5 star Green Star rating.
CPOF Fund Manager, Craig Newman, said the Parramatta investment will create value for their tenant customers, capital partners, and the community.
“The acquisition of 105 Phillip Street, which has been de-risked through the fixed price building contract and NSW Government pre-lease, represents a high quality addition to the CPOF portfolio which will create significant value through an enhanced income yield and total returns for CPOF investors,” Mr Newman said.
Completion is anticipated during the second half of the 2018 financial year.