Sydney-based Chinese investors have listed a refurbished office tower in central Parramatta with price expectations of $75 million.
The B-grade 11-level commercial building in Parramatta's CBD is part of a 1,731sq m landholding at 80 George Street.
The commercial building comprises 8,100sq m of lettable space as well as 99 basement car spaces and an extensive ground floor retail area.
The investor group bought the tower in late 2016 for $51.9 million from GDI Property Group. GDI made a return of 19 per cent on the sale, having bought it for $38.7 million two years earlier.
Knight Frank’s Tyler Talbot, Wally Scales and Dominic Ong have been appointed to manage the sale on behalf of a private investors.
According to Talbot, the secure tenancy and future development upside of the property would be a drawcard for investors.
“Investors will benefit from the strong mix of corporate tenants already in place, with future rental and development potential allowing investors to capitalise on growing demand.”
The property holds a strong mix of corporate tenants has a weighted average lease expiry of 5 years.
Parramatta has a well-established office market that is currently experiencing strong demand for commercial space.
“New residential high-rise projects are providing after-hours activation to enhance amenity and significant office development activity is delivering the scale and quality of commercial product that has been lacking in the past,” Knight Frank Western Sydney commercial sales director Wally Scales said.
“When coupled with major infrastructure improvements the property fundaments and growth prospects over the next two decades are compelling.”
The western Sydney hub has been singled out as a key part of the future development of Sydney under plans unveiled in 2016 by the Greater Sydney Commission.
A swathe of redevelopment is currently under way in Parramatta, attracting developers and spurring the market in commercial real estate such as GPT's $277.6 million acquisition of the Eclipse tower from super fund Rest in August 2018.
Construction is under way on GPT's $230 million office tower development on the corner of Smith and Phillip streets. While Charter Hall has partnered with Western Sydney University to develop a $280 million education and commercial office project at Parramatta.
Dexus has also gained approval to develop a 33-storey $500 million office building at 140 George Street, set to deliver 45,700sq m of space.