In an attempt to capitalise on Sydney’s second largest commercial hub, property fund manager Capital Property Funds has put its nine-storey Parramatta KPMG building on the market.
The 33-year-old commercial office tower was purchased by Capital Property funds for $30 million in 2015. The building was last valued in June of 2017 by Cushman & Wakefield at $39.9 million but is now expected to fetch over $50 million.
Savills Australia in conjunction with Inc RE have been appointed to sell the property at 91 Phillip St.
“Record CBD office prices and rental rates are pushing companies to consider Sydney’s outer suburbs, with Parramatta quickly becoming a popular cost-effective option,” Savills' Simon Fenn said.
“The Parramatta office market is the most exciting in Australia, as it transitions into ‘Sydney’s second largest CBD’”.
Parramatta’s infrastructure pipeline includes the Western Sydney Airport, the $20billion WestConnex road investment program, the proposed Parramatta Light Rail and the multimillion relocation of the Powerhouse Museum to Parramatta.
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KPMG spans the fourth largest amount of space in the "KPMG building" behind tenants Regus, Cunningham Lindsey and the NSW Government. Other notable companies such as Frank Knight and Scentre Group also occupy space in the building.
The building features 5,407 square metres of A-grade net leasable area and comes with 133 secure car parks.
“Parramatta currently has Australia’s lowest vacancy level across all major commercial markets, with total vacancy sitting at 3.0 per cent and zero A-grade vacancy,” Fenn said.
“We are addressing pent-up demand following a five-year period of limited construction activity and record low A-Grade vacancy.”
The sale will take place via domestic and international expressions of interest .