The long awaited settlement of part of the NSW Government's Parramatta Justice Precinct has been completed with Eureka Funds Management paying $170.1 million for the two adjacent, freestanding A grade commercial properties at 160 Marsden Street and 4 George Street, both of which have a 15 year leaseback to Government Property NSW (GPNSW).
The transaction set a record passing yield of 6.27% for commercial office in Parramatta.
The sale and leaseback process was managed by the Major Projects division of GPNSW. Since 2012, GPNSW has realised in excess of $700 million through the sale of properties where ownership was not essential for service delivery. This approach ensures a more efficient use of the State's assets and delivers substantial economic benefits through the reinvestment of proceeds back into the community.
ALSO SEE: Spectacular views luring Buyers to Parramatta CBD
Since the properties exchanged late last year, the Parramatta market has been one of the most actively sought after regions in Australia with recent movement including Charter Hall's acquisition of the new UWS city campus, which is due for completion in late 2016, for $220.5m, GDI's purchase of 80 George Street for $38.7m and IOOF's purchase of 3 Horwood Place for $25.4m. There are several other off market transactions that have occurred recently in the $30m price range.