Mirvac Group has acquired a piece of Parramatta's CBD after signing an $86.3 million deal for an A-grade twin tower.
Located at 75 George Street, Mirvac's new asset covers six levels and is currently 100 per cent leased, with St. George Bank occupying 68 per cent as the building's major tenant.
CorVal bought the B-grade tower in 2012 for $32.5 million and has a permit to add another two-storeys of 2600 square metres office space to the building.
The property also comes with a scheme to redevelop the building into a 36-storey tower on a 2668 square metre site, giving Mirvac the opportunity to develop a new landmark commercial office tower.
The building has a WALE of 3.13 years by income.
[Related reading: Miele Signs Seven-Year Lease at Mirvac Industrial Development]“This acquisition provides us with exposure to the Parramatta CBD market, which has been one of the strongest performing markets nationally, with a Prime vacancy rate that has averaged below 3 per cent for the past decade," Mirvac head of Office and Industrial Campbell Hanan said.
Prominently positioned in the heart of the Parramatta CBD at the intersection of George Street and Smith Street, the asset is located between the traditional centre of Parramatta and the new development precinct concentrated around Parramatta Square and train station.
This acquisition is well-timed to capitalise on $10 billion in committed infrastructure investment underway, which will transform Parramatta into a second Sydney CBD with significant scale.
“The asset is strategically located, with Parramatta Train Station just 350 metres away, and provides excellent amenity for tenants, with nearby retail and dining offerings," Hanan said.
"This amenity will continue to improve as Parramatta Square and other projects continue to come online.”
[Related reading: Parramatta Square: An Insight into Parramatta’s $2 Billion Urban Renewal]“This acquisition sits within Mirvac’s directional mandate to acquire assets in key urban locations, and highlights our capacity to source and secure core assets with future development opportunities."Settlement of the acquisition is expected to take place in January 2018.